Royal Dutch Shell (LON:RDSA) has inked a deal to sell its interest in the Bongkot field offshore Thailand, the Anglo-Dutch group has said. The move comes as the oil major continues with its disposals as it looks to shore up its balance sheet in the wake of the BG Group acquisition.
Shell’s share price has been little changed in London in today’s session, having inched 0.10 percent higher to 2,484.00p as of 09:42 GMT. The advance is in line with gains in the broader UK market, with the benchmark FTSE 100 index currently standing 0.09 percent higher at 7,595.05 points.
Thai gas field stake sale
Shell announced in a statement today that it had agreed to sell its 22.22 percent stake in the Bongkot field and adjoining acreage offshore Thailand to PTT Exploration & Production Public Company Limited, for a transaction value of $750 million. The deal is expected to complete in the second quarter of the year, subject to completion conditions.
The move came after in October, the Anglo-Dutch oil major scrapped $900-million deal to sell the assets to Kuwait Foreign Petroleum Exploration Company.
“The two deal values are not comparable and we will not comment further on any commercial terms,” a Shell spokeswoman told Reuters in an e-mail when asked about the discrepancy between the price tags in the two deals.
Shell meanwhile commented in the statement that the decision to sell the field was driven by the group’s strategy to sell non-core assets, and noted that today’s deal took “Shell a step closer to its divestment target of $30 billion”.
The Anglo-Dutch oil major is scheduled to update investors on its fourth-quarter performance tomorrow when it is expected to reveal that it has doubled its annual profits.