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.
Shell Integrated Gas Thailand also plans to participate in the upcoming licensing round for the extension of the Bongkot concession.
(c) 2017 City A.M., source Newspaper