Purchase of 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 included)
SET-listed energy company Banpu Plc says it has completed the acquisition of natural gas and midstream assets in a Texas shale field in the US state of Texas from two subsidiaries of Exxon Mobil Corporation.
Banpu acquired the assets in the development of Barnett Shale through BKV Corporation (BKV), its 96.12% subsidiary, in a $750 million (baht 26.45 billion) transaction, with contingent payments of up to $50 million. the sellers were the Exxon units XTO Energy Inc and Barnett Gathering LLC.
Banpu previously acquired gas companies in the Barnett field and the Marcellus shale field in Pennsylvania, with a combined production capacity of 700 million standard cubic feet per day (MMSCFD).
The new assets, with a production capacity of 225MMSCFD, will bring Banpu’s total gas production in the United States to more than 900MMSCFD. Proven reserves will increase from 4.4 trillion cubic feet equivalent (Tcfe) to over 5.8 Tcfe.
Revenues from operating the new assets will be realized from Friday, 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 collection system and approximately 1,200 kilometers of pipeline and more than 20 compressor stations that provide direct access to key US markets for natural gas, liquefied natural gas and condensate.
“This acquisition represents an important milestone in the development of Banpu’s Greener Smarter business in the US,” CEO Somruedee Chaimongkol said in a statement.
The company is committed to accelerating business transformation by expanding its greener energy and energy technology portfolio, she added. The goal is to adopt an anti-fragile strategy for all business groups to face the challenge of emerging uncertainty while exploring new business opportunities for business growth.