Shell's Divestment Push Reaches Thailand in $900 Million Sale

Shell's Divestment Push Reaches Thailand in $900 Million Sale

Royal Dutch Shell Plc will sell its stake in an offshore Thai gas field to a
unit of Kuwait Petroleum Corp. for $900 million as the international energy
giant continues hawking assets for cash in the midst of a years-long energy
slump.

Shell reached an agreement to sell two subsidiaries that own a combined 22.2
percent interest in the Bongkot field and adjoining offshore acreage to a
subsidiary of Kuwait Foreign Petroleum Exploration Co., the unit known as
Kufpec, Shell said in a statement Tuesday. A spokesperson for Kufpec, the
international arm of Kuwait's state-owned energy company, wasn't immediately
available to comment.

The Bongkot field started production in 1993 and came to Shell when it
acquired BG Group Plc for $70 billion in 2015. To win shareholder support
for that deal, Shell has promised cost savings of $2.5 billion, asset
disposals of at least $30 billion within four years and a share buyback of
$25 billion from 2017 to 2020.

"This transaction shows the clear momentum behind Shell's global,
value-driven $30 billion divestment programme, and is consistent with the
company's strategy to high-grade and simplify its portfolio following the
acquisition of BG," Shell said in the release.

The field's other owners are Total SA, with a 33.3 percent stake, and PTT
Exploration & Production PCL, which has 44.4 percent share and operates the
field. The deal should be completed this quarter, Shell said in the release.

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Link to Original Article:
https://www.bloomberg.com/news/articles/2017-01-31/shell-s-divestment-push-r
eaches-thailand-in-900-million-sale

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com