5 days ago
PTTEP to divest from Mexican site
SET-listed PTT Exploration and Production (PTTEP) is pushing ahead with its plan to exit the petroleum business in Mexico, in line with the company's business restructuring to invest in other regions.
The move, which was announced in February this year, results in the company selling its entire share of 16.67%, worth US$40 million, in the offshore petroleum Block 29 project to Repsol Exploracion Mexico, a subsidiary of Spanish energy firm Repsol.
"The transaction is expected to be completed within the third quarter of this year," said Sermsak Satchawannakul, senior vice-president of PTTEP's finance division.
The decision to sell the shares was made after the company completed a thorough consideration of its budget as well as oil exploration work at Block 29, he said.
Block 29, located in the southern part of the Gulf of Mexico, has the potential for oil production from two oil wells: Chinwol and Polok.
PTTEP previously decided to sell shares in petroleum businesses in non-core strategic countries, including Australia, Brazil and Canada, enabling it to refocus investment, allocating budget to the petroleum industry in the Middle East and Asia-Pacific.
Mr Sermsak said the company will maintain its investment in Rovuma Area 1, an offshore petroleum field in Mozambique, despite a delay in business development mainly caused by a local political conflict.
He said the company's business direction for Rovuma Area 1, currently in the exploration phase, will become clearer in the second half of the year, following talks with Total, the France-based national energy conglomerate, which believes the site can be developed for liquefied natural gas (LNG).
PTTEP's total petroleum sales this year are estimated at 512-517 kilobarrels of oil equivalent per day, thanks to asset restructuring, said Mr Sermsak.
LNG prices in the spot market in the second half of this year are expected to be slightly higher than the average price of $12.3 per million British thermal units in the second quarter, attributed to increasing demand from Asian and European nations.
