PTT Exploration and Production Public Company Limited (PTTEP) has announced that on February 15, 2019, PTTEP SP Limited (a subsidiary of PTTEP) signed the Share Purchase Agreement (SPA) to acquire 33.8% stake in APICO LLC from Tatex Thailand LLC and Tatex Thailand II LLC with total transaction value of approximately USD 64 million (Approx. THB 2 billion).
The amount is to be adjusted for working capital until the completion date which is subject to the completion conditions as prescribed in the SPA. The closing date is expected to be within the first half of 2019.
APICO LLC holds 35% participating interest in EU1 / E5N (Sinphuhorm Project) and 100% participating interest in Block L15/43 and Block L27/43. PTTEP is currently the operator with a 55% interest in the Sinphuhorm project. After the completion of the transaction, PTTEP’s stake (both direct and indirect) in this project will increase to 66.8%.
Sinphuhorm Project is an onshore natural gas field located in the northeast of Thailand. In 2018, the project’s average sales volume of natural gas was approximately 79 million cubic feet per day (12,927 barrels of oil equivalent per day) and average condensate sales volume was 246 barrels per day.
The acquisition of interest in the Sinphuhorm Project fits PTTEP’s growth strategy to expand investment in Thailand and South East Asia where PTTEP has expertise (Coming Home Strategy), and which will increase petroleum reserves, and generate return on investment to PTTEP as well as providing reliable energy supply for the country.