Shell signed an agreement to sell its 22.22% participating interest in the Bongkot and satellite gas fields straddling the B15, B16, B17 and G12/48 concessions in the Malay Basin, offshore Gulf of Thailand, on 31 January 2018. The deal that is worth USD 750 million is expected to be finalized by the second quarter of 2018, subject to the completion of certain conditions as prescribed in the agreement. PTTEP is the operator for the Bongkot project and its operating interest will increase from 44.45% to 66.67%, after the asset acquisition. Total E&P is the other partner with 33.33% equity. Earlier on 31 October 2017, Shell had mutually agreed with Kufpec to cancel the Sale and Purchase Agreement worth USD 900 million for the assets in Thailand. It is understood that the cancellation was due to disagreements on certain sale terms that could not be resolved within Shellâs and Kufpecâs time frame. The sale price was lower than the original offer of USD 1.2 billion, possibly due to weak oil prices.  The Bongkot complex, including the main Bongkot field and the Greater Bongkot South development, is a major contributor to domestic production, with approximately 1,100 MMcfg/d and 27,800 bc/d in November 2017, an increase to the Q3/2017.  According to PTTEP, the average sales volume for Thailand in Q4/2017 increased to 5% from Q3/2017, primarily from the Bongkot complex. The average selling price in Q4/2017 also increased to 41.74 USD/boe (Q3/2017: 38.78 USD/boe).
Thailand (Malay B.) Bongkot