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6 Pages

Shell exits Thailand: sells Bongkot stake to KUFPEC for US$900 million

Shell exits Thailand: sells Bongkot stake to KUFPEC for US$900 million

Report summary

Shell is selling non-operated interests in the Bongkot concession for US$900 million. Bongkot is one of Thailand's largest gas/condensate fields. We value the stake broadly in-line with the purchase price. This valuation is for the remaining life of Bongkot until contract expiry in March 2023. We have excluded decommissioning liabilities as there are uncertainties surrounding regulation and we also understand Shell will retain a portion of decommissioning liabilities as part of the deal. Possible valuation upside includes a 10-year award of the post-expiry contract for Bongkot. Bongkot was Shell's only upstream asset in Thailand, and an obvious target in Shell's US$30 billion disposal programme. The deal marks a new entry into Thailand for KUFPEC. We expect M&A activity to accelerate this year as Majors sharpen their portfolios by selling off mature and mid-life fields.

What's included?

This report includes 1 file(s)

  • Shell exits Thailand: sells Bongkot stake to KUFPEC for US$900 million PDF - 292.17 KB 6 Pages, 7 Tables, 0 Figures


The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Deal Insight report provides an in-depth analysis of this deal. You will also find information about upstream assets and the strategic rationale behind the deal.

For investors and businesses, this deal insight report provides an understanding of the effect this deal will have on the market, including oil and gas pricing and assumptions. Use it to keep up to date with deal announcements, gain expert insights and analyse potential developments that might affect your strategy.

Wood Mackenzie goes beyond company-reported data and announcements to give you an independent and informed view. Our unique valuation metrics are underpinned by our deep understanding of upstream assets and companies. We help you objectively benchmark and evaluate asset and corporate deals so you can compare deal economics around the world.

  • Executive summary
  • Transaction details
  • Upstream assets
    • Bongkot area and Block G12/48
  • Deal analysis
  • Upsides and risks
    • Licence award (Post-2023)
    • Gas Price
    • Decommissioning
    • Reserves
    • Exploration
    • Operatorship
  • Strategic rationale
    • Shell
    • KUFPEC
  • Oil & gas pricing and assumptions

In this report there are 7 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Transaction details
  • Upstream assets
    • Upstream assets: Table 1
  • Deal analysis
    • Deal analysis: Table 1
    • Deal analysis: Table 2
    • Deal analysis: Table 3
  • Upsides and risks
  • Strategic rationale
  • Oil & gas pricing and assumptions
    • Oil & gas pricing and assumptions: Table 1
    • Oil & gas pricing and assumptions: Table 2
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