PTTEP sells Montara to Jadestone
PTTEP has agreed to sell its 100% stake in the producing Montara oil field offshore northwest Australia to Jadestone Energy.
BANGKOK, Thailand – PTTEP has agreed to sell its 100% stake in the producing Montara oil field offshore northwest Australia to Singapore-based Jadestone Energy.
Average production during the first half of this year was around 7,694 b/d.
The purchase value of $195 million will be adjusted for working capital from the operations until the date the transaction completes, probably later this year.
In addition, PTTEP will receive contingent consideration amounts of up to $160 million depending on certain production, oil price, and future development milestones.
Completion of the sale remains subject to regulatory approvals from Australia’s National Offshore Petroleum Titles Administrator and the National Offshore Petroleum Safety and Environmental Management Authority.
Jadestone’s President and Chief Executive Paul Blakeley said: “We have identified a number of material near-term opportunities to add significant value to the asset, including improved production uptime, operating cost reductions, and infill drilling, and longer-term more value creation options through future exploration, a potential gas cap blowdown and a regional hub development strategy.
“We expect field life to be extended by many years.”
PTTEP said the sale was in line with its strategy of focusing on areas in Southeast Asia and the Middle East, where it has experience and proven expertise, and which also provide high petroleum potential, low cost structures, and low risks.
Recently, the company acquired Shell’s stakes in the giant Bongkot field offshore Thailand, and its immediate priorities will be to bid for the expiring offshore Bongkot and Erawan concessions.