ASEAN KEY DESTINATIONS
PTT makes Canadian purchase
The deal is the largest overseas acquisition to date by a Thai company, exceeding the US$1.7 billion paid earlier this year by Banpu Plc to buy Centennial Coal Co of Australia.
In addition to gaining access to a highly attractive deposit in the western Canadian province of Alberta, the company hoped to pursue future growth into unconventional resources. That growth could include a partnership with Statoil, one of the world's leaders in heavy oil and deep-water exploration and production, he said.
"It is a win-win business goal for the two firms since we have a strong foothold in the Asia-Pacific region, while Statoil has strong oil and gas upstream activities in North and South America and Africa," Anon Sirisaengtaksin, PTTEP's chief executive officer, said.
The transaction is expected to be completed within the first quarter of 2011, subject to Canadian regulatory approvals. Statoil will hold 60 percent in the project and continue as its operator.
Kai Kos Dehseh is a significant deposit covering 257,200 acres with an estimated 4.3 billion barrels of recoverable bitumen resources. All told, the oil sands are said to contain the largest crude reserves outside of Saudi Arabia.
According to Mr. Anon, the deal would extend the lifespan of PTTEP's oil reserves to 40 years from 10 years.
The company plans to sell $800 million worth of bonds overseas to finance part of the investment plan. It will also sign a five-year, $500-million syndicated loan deal with four foreign banks this week. It will fund another $1 billion of the investment plan with cash.
PTTEP currently has 40 projects in 14 countries, most of which are in Asia, while Statoil has a presence in 13 countries, mostly in North and South America, Africa and the Middle East.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below