The parties associated with the sale and purchase agreement made in January had reached a mutual understanding to terminate it.
Shell and KUFPEC failed to resolve the different interpretations they had on the share sale transactions within the committed timeframe. This, eventually led to the cancellation of the agreement, reports Reuters citing an emailed statement from a Shell representative.
As part of the deal, Kufpec Thailand was to acquire a stake of 22.2% from Shell Integrated Gas Thailand (SIGT) and Thai Energy (TEC), both subsidiaries of Shell. The stake was related to the Bongkot field and adjoining acreage in Thai waters comprising Blocks 15, 16 and 17 and block G12/48.
Currently, Shell’s partners in the Bongkot field are PTT Exploration & Production (PTTEP) which is the operator with a stake of 44.4% and Total with 33.3% stake.
According to Shell, its subsidiaries SIGT and TEC will continue to support the state-owned oil and gas firm PTTEP in the safe and efficient operation and additional development of the gas field.
The oil giant also revealed that SIGT plans to take part in the upcoming licensing round for the extension of the Bongkot field.
Shell stated: “Shell Group’s divestment programme continues to make good progress at both raising cash and re-shaping the company.
“To date, the company has more than $25 billion in completed, announced or in progress divestments, on track to meet its target of $30 billion of divestments between 2016 and 2018.”
