PTT Exploration and Production Plc (PTTEP) has announced divestment of its 100-per-cent stake in the Montara oil field as part of its strategy to focus on operations and projects in strategic locations.
Chief executive Somporn Vongvuthipornchai said PTTEP Australasia (Ashmore Cartier) Pty Ltd had agreed to sell its stake in the Montara field to Jadestone Energy (Eagle) Pty Ltd for US$195 million.
The amount is to be adjusted for working capital spent until the date of transaction, expected this year.
PTTEP will also have additional contingency consideration amounts of up to $160 million depending on production, oil price and future development milestones being achieved.
Completion of the sale is subject to the sale and purchase agreement, including Australian regulatory approvals from the National Offshore Petroleum Titles Administrator and the National Offshore Petroleum Safety and Environmental Management Authority.
“The sale of the Montara field is in alignment with our strategic direction in increasing investments in our focused areas in Southeast Asia and the Middle East, where we have experience and expertise,” Somporn said.
“These areas have high petroleum potential, low-cost structure and low risks that will help us add more petroleum reserves and enhance long-term growth for the company.”
The Montara field is off Australia. The average production volume in the first half of this year averaged 7,694 barrels per day.