PTTEP and Pertamina signed a 50:50 joint venture to buy Hess's assets off Indonesia for US $1.3 billion. The companies will gain 75% stake in Pangkah field and 23% in the Natuna Sea A field. The Pangkah transaction will be finalized in Q1 2014, and the Natuna Sea A transaction will close by year-end 2013.
The acquisition of Pangkah and Natuna Sea A sets the stage for PTTEP’s plans for continued growth by acquiring more assets, including Pailin and Sinphuhorm fields, Hess’s Thai assets. The company has already expanded its investments to 45 projects in 12 countries, including last year’s acquisition of Cove Energy Plc’s oil and gas assets in Mozambique for $1.6 billion.
The two fields produced about 15,000 boe/d in the first three quarters of 2013. Hess plans to use the proceeds from the transaction to continue repurchasing shares under its existing $4 billion authorization. According to the company’s CEO, John Hess, the firm raised $6.5 billion in 2013 from asset sales.The agreements are subject to customary closing conditions and are expected to close before the end of the first quarter of 2014.