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KUFPEC gains Greater Sleipner, Thai stake

Written by  OE Staff Wednesday, 01 February 2017 09:18

Kuwait Foreign Petroleum Exploration Co. (KUFPEC) has gained interest in the Greater Sleipner area offshore Norway, in addition to stake in the Gulf of Thailand.

Image from KUFPEC.

The company’s Norwegian subsidiary, KUFPEC Norway, completed the acquisition of upstream interests offshore Norway in the Greater Sleipner area from Total E&P Norge, in a US$300 million. The deal, completed on 21 December 2016, has an effective date of 1 January 2016.

The acquired interests in the Greater Sleipner area consist of the following assets:15% interest in the Gina Krog development (first oil expected in Q2 2017); 9.4% interest in the Sleipner Vest producing field; 10% interest in the Sleipner Øst producing field; 6.2% interest in the Utgard development; and 21.8% interest in the Eirin discovery.

The transaction adds approximately 46 MMboe in net reserves with over 9000 boe/d of production from the acquired assets in 2016, expected to exceed 13,000 boe/d once Gina Krog is onstream later this year. All the acquired assets are operated by Statoil. The deal expands KUFPEC’s presence in Norway and builds on KUFPEC Norway’s recent pre-qualification as an operator. 

Offshore Thailand, KUFPEC Thailand Holdings Pte Ltd. signed definitive agreements worth $900 million to acquire the shares of Shell Integrated Gas Thailand, which holds upstream interests located offshore in the Gulf of Thailand, from BG Asia Pacific Holdings, a wholly-owned subsidiary of Royal Dutch Shell.

Under the agreement, the parties have agreed an appropriate allocation of decommissioning liabilities. The acquired interests include a 22.2222% non-operated interest in the concessions related to the Bongkot gas and condensate field and Greater Bongkot Area.
 
The acquisition provides KUFPEC with 68 MMboe in proved and probable (2P) reserves and approximately 39,000 boe/d of production from 2016, which will contribute significantly toward its 2020 strategic targets, the company said. The acquired concessions are operated by PTT E&P Public Co. Total also holds a non-operated interest in the concessions.
 
Completion of the acquisition is subject to procedural matters and is expected in February 2017.

“These acquisitions are the latest steps in a series of acquisitions by KUFPEC of assets that provide significant reserves, material production, and strong cash flows to our portfolio. The addition of the Thailand asset, along with the completion of the Norway acquisition last month, will provide the company with total production exceeding 100,000 boe/d for the first time in KUFPEC's history. These transactions put us well on our way toward achieving our strategy through acquisitions of profitable, quality assets that provide significant upside to contribute to the company’s future goals. We look forward to working closely with the world class partners to realize the full potential of the assets,” KUFPEC Chief Executive Officer Shaikh Nawaf Saud Nasir Al-Sabah said.

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