PTT Exploration and Production Plc (PTTEP) has announced the divestment of a 2.5% share in an oil project in Angola as it plans to direct funds to other regions.
The company is in the process of selling the shares in Block 17/06 to Sociedade Petrolífera Angolana SA, also known as Somoil.
The divestment marks the withdrawal of all of PTTEP's investments in Angola, which aligns with the company's strategy. PTTEP aims to expand its petroleum exploration and production businesses in the Middle East and Asia-Pacific.
Somoil Bloco 17/06 SA, a subsidiary of Somoil, plans to buy the shares from PTTEP's wholly-owned subsidiary PTTEP (Angola) Corporation.
The sale is expected to be completed by the middle of next year, said Montri Rawanchaikul, chief executive of PTTEP.
Block 17/06 is an offshore oil field located off the west coast of Angola in central-southern Africa. The project is currently in the development phase.
The move to divest the shares comes after PTTEP earlier announced five-year investments worth US$29 billion to boost national energy security and fight global warming. The budget is scheduled to be spent between 2023 and 2027.
PTTEP aims to increase exploration and production of petroleum, cut greenhouse gas emissions, and diversify into new businesses.
Next year the company plans to maximise petroleum production at its facilities to ensure energy security for Thailand.
Petroleum will be mainly supplied from the Erawan, Bongkot and Arthit gas blocks in the Gulf of Thailand, and at other sites, including those in Malaysia, said PTTEP. The company assumed operations at the Erawan block in April, succeeding US-based Chevron, whose gas production concession expired.
The company wants to make its business operations more sustainable, with a plan to achieve net-zero, a balance between greenhouse gas emissions and absorption, by 2050. PTTEP plans to spend $2.6 billion next year on reducing greenhouse gas emissions.
The company wants to cut carbon dioxide emissions by 30% by 2030 and 50% by 2040.