Shell scraps $900m sale of its Thai gas field stakes

 
Courtney Goldsmith
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Shell said the deal did not complete in the agreed timeframe (Source: Getty)

Royal Dutch Shell has cancelled a $900m (£679m) deal to sell its Thai gas field stakes to Kuwait's state oil company after the deal took too long to complete.

The oil major announced the deal to sell its 22 per cent stake in the Bongkot natural gas field and adjoining offshore acreage to Kuwait Foreign Petroleum Exploration Company (KUFPEC) in January as part of its divestment drive following the acquisition of rival BG Group for $70bn.

The deal was set to complete in the first quarter of 2017.

"Although Shell and the Thai government have worked together closely and collaboratively on the matter, the different interpretations of the treatment of share sale transactions were not resolved within Shell and KUFPEC’s agreed timeframe. Therefore, both parties jointly decided to terminate the transaction," a Shell spokesperson said.

Shell's two Thai subsidiaries will continue to support operations and development at Bongkot with joint venture partners PTT Exploration & Production and Total. One subsidiary, Shell Integrated Gas Thailand, also plans to participate in the upcoming licensing round for the extension of the Bongkot concession.

Shell's $30bn divestment programme has made good progress, with more than $25bn announced or in progress to date, the company said.

Shell's spokesperson added: "We would like to thank the government for the time and attention they have given to the matter and we look forward to continuing our collaborative working relationship going forward."

Read more: Shell profits rocket by 245 per cent as oil prices recover

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