- Royal Dutch Shell (LON:RDSa) (RDS.A, RDS.B) says it has canceled a $900M deal to sell its gas field stakes in Thailand to Kuwait's state oil company.
- Shell says "the different interpretations of the treatment of share sale transactions were not resolved within Shell and [Kuwait's] agreed timeframe."
- The deal had called for Shell to divest its shares in two subsidiaries - Shell Integrated Gas Thailand and Thai Energy Co - to the Kuwaiti firm's Thai oil unit.
- The Shell subsidiaries together hold a 22.22% equity stake in the Bongkot natural gas field and adjoining offshore acreage, while PTT Exploration and Production operates Bongkot with a 44.44% holding, and Total (NYSE:TOT) holds a 33.33% stake.
- “There’s no longer the same pressure on Shell to sell,” since the company has nearly met its $30B divestment target, says a Wood Mackenzie analyst, who also notes that "Thailand remains a small but profitable part of Shell’s portfolio in Southeast Asia."
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