PTT Exploration and Production Public Company Limited (PTTEP) announces that on 31 January 2018, PTTEP and PTTEP International Limited (a wholly-owned subsidiary of PTTEP) have signed an Agreement for the Assignment and Transfer of the 22.2222% stake in the Bongkot Project from Shell subsidiaries, namely Shell Integrated Gas Thailand Pte. Limited and Thai Energy Company Limited, with the transaction value before tax of approximately USD 750 million. After the completion of the transaction, PTTEP’s stake in the Bongkot Project will increase to 66.6667%. The completion of transaction is subject to the completion conditions as prescribed in the agreement with an expected closing date within the second quarter of 2018.

“The acquisition fits to our growth strategy of adding producing assets or those in the final stage of development located in South East Asia where we have experience, and which immediately contributes sales volume, petroleum reserves, and cash flow,” said Somporn Vongvuthipornchai, Chief Executive Officer of PTTEP.

With regard to this acquisition, the company’s daily sales volume will be increased by approximately 35,000 barrels of oil equivalent per day (BOED).

The Bongkot Project, consisting of Block B15, B16, B17 and G12/48, is the natural gas field in the Gulf of Thailand operated by PTTEP with the remaining stake owned by Total (33.3333%), a major French oil and gas company. Current sales volume is approximately of 860 million cubic feet per day of natural gas and 26,000 barrels per day of condensate. This gas field is a vital source of energy supply for electricity generation, accounting for approximately 30% of domestic natural gas output. PTTEP’s operational capability in the Bongkot Project, the first offshore gas field operated by a Thai oil and gas company, clearly demonstrates competency of Thais in operating exploration and production assets at an international standard.

“With regard to the Bongkot concession expiry in 2022-2023, we are ready to participate in bidding to continue as the operator in order to maintain energy security for the country,” added by Somporn.

About PTTEP

PTTEP is a national petroleum exploration and production company dedicating to provide a sustainable petroleum supply to Thailand and the countries we operate as well to bring in foreign exchange earnings to our country.

About Royal Dutch Shell plc

Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 70 countries and territories with businesses including oil and gas exploration and production; production and marketing of liquefied natural gas and gas to liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects.