Thailand’s PTTEP sells stake in Mexican oil block

Thailand's state-controlled upstream firm PTTEP has agreed to sell its 16.67pc share in a Mexican offshore oil asset to Spanish firm Repsol.

PTTEP will sell its entire 16.67pc share in Mexico's deepwater block 29 in the southern Gulf of Mexico, it announced on 20 September. The transaction, subject to the conditions of the sales and purchase agreement, is expected to be completed by the end of this year. The conditions were not disclosed.

The Mexico block 29 project is still under the exploration phase. The block is home to the Chinwol and Polok discoveries with contingent resources estimated at 300mn bl of oil equivalent (boe) each.

Repsol is the operator of the block and its share will increase from 30pc to 46.67pc after the deal is completed. PC Carigali Mexico Operations, the Mexican subsidiary of Malaysian energy firm Petronas, has a 28.33pc share, while Harbour Energy — following its acquisition of most of Wintershall Dea's assets earlier this month — has a 25pc share.

The divestment is "part of a portfolio rationalisation effort to align with PTTEP's latest investment strategy," said chief executive officer Montri Rawanchaikul.

PTTEP aims to increase its oil production this year by 9pc to 505,000 boe/d. It earlier this year indicated it will install additional wellhead platforms for drilling activity to sustain production capacity. The firm in June acquired a 10pc participating interest in the Ghasha concession, one of the largest natural gas fields in the UAE.

By Prethika Nair