Shell axes Thailand stakes sale

Royal Dutch Shell said on Wednesday that it had agreed to cancel a Thailand asset sale valued at USD 900 million to Kuwait Foreign Petroleum Exploration Company (KUFPEC).

The deal, struck back in January, involved two Shell subsidiaries that hold a 22.222% interest in offshore blocks 15, 16 and 17 and G12/48 including Bongkot gasfield. The super-major’s partners there are operator PTT Exploration & Production with a 44.445% stake and France’s Total, which holds an interest of 33.333%.

“Although Shell and the Thai government have worked together closely and collaboratively on the matter, the different interpretations of the treatment of share sale transactions were not resolved within Shell and KUFPEC’s agreed timeframe,” Shell representatives told Reuters. “Therefore, both parties jointly decided to terminate the transaction.”

Shell inherited the assets in question from BG Group, which it acquired in early 2016 for USD 70 billion. They were also part of a global divestment drive that sought to reduce the super-major’s debt after the acquisition.

“Shell Group’s divestment programme continues to make good progress at both raising cash and re-shaping the company,” the press release added. “To date, the company has more than USD 25 billion in completed, announced or in progress divestments, on track to meet its target of USD 30 billion of divestments between 2016 and 2018.”