Purchase from Exxon subsidiaries makes unit of Thai firm largest operator in Barnett shale field
An existing production facility at a gas site in the Barnett Shale field in Texas. (Photo supplied)
The SET-listed energy company Banpu Plc says it has completed the acquisition of natural gas and midstream assets in a shale field in the US state of Texas from two subsidiaries of Exxon Mobil Corporation.
Banpu acquired the assets in the Barnett Shale development through BKV Corporation (BKV), its 96.12%-owned subsidiary, in a transaction worth US$750 million (26.45 billion baht), with contingent payments up to $50 million. the sellers were the Exxon units XTO Energy Inc and Barnett Gathering LLC.
Banpu earlier acquired gas businesses in the Barnett field and the Marcellus shale field in Pennsylvania, with combined production capacity of 700 million standard cubic feet per day (MMSCFD).
The new asset, with production capacity of 225MMSCFD, will bring Banpu’s total gas production in the United States to more than 900MMSCFD. Proved reserves will increase from 4.4 trillion cubic feet equivalent (Tcfe) to more than 5.8 Tcfe.
Revenue from the operation of the new asset will be realised from Friday onward, the company told the Stock Exchange of Thailand.
The Banpu subsidiary BKV is now the largest producer of natural gas in the Barnett area. The acquisition includes a midstream gathering system and approximately 1,200 kilometers of pipelines and over 20 compressor stations offering direct access to key US markets for natural gas, natural gas liquid and condensate.
“This acquisition represents a significant milestone in the development of Banpu’s Greener Smarter business in the US,” chief officer Somruedee executive Chaimongkol said in a statement.
The company is committed to accelerating business transformation by expanding greener energy and energy technology portfolio, she added. The goal is to adopt an anti-fragile strategy across all business groups to deal with the challenge of emerging uncertainty while also exploring new business opportunities for business growth.