PTT Exploration and Production Plc (PTTEP) has acquired a 25% stake from Eni Sharjah B.V. (ENI) to invest in Concession Area C, an onshore gas field in the Emirate of Sharjah, as it continues to look for potential gas production areas in the Middle East.
The investment was made through PTTEP's wholly-owned PTTEP Mena Co, according to its report submitted to the Stock Exchange of Thailand yesterday.
PTTEP Mena Co signed a farm-in/farm-out agreement for the acquisition process, expected to be completed by the end of this year.
After the deal, ENI, a subsidiary of an Italy-based multinational oil and gas company, will hold a 50% share in Area C project, while UAE-based SNOC and PTTEP Mena Co will each hold a 25% stake, said Montri Rawanchaikul, chief executive of PTTEP.
Area C is an onshore gas and condensate concession block in the exploration phase. It is situated in the central part of Sharjah Emirate, covering 1,184 square kilometres.
On Dec 1, PTTEP announced the allocation of US$5.66 billion for expenditures next year. Up to $3.21 billion are capital expenditures, while the remaining $2.45 billion is for operating expenditures.
The budget is part of a five-year expenditure plan, recently revised to a total amount of $27.2 billion for use from 2022 to 2026.