Bulletin: PTTEP's Partex Acquisition Supports Reserve Life Without Eroding Financial Headroom

SINGAPORE (S&P Global Ratings) June 18, 2019--S&P Global Ratings today said that the proposed acquisition by PTT Exploration and Production Public Co. Ltd. (PTTEP; foreign currency BBB+/Stable/--; local currency A-/Stable/--) of Partex Holding B.V. will modestly enhance PTTEP's reserve life without materially affecting its financial headroom. The US$622 million acquisition is likely to be completed toward the year-end. Partex has equity considerations in seven projects in five countries, with focus on operating assets in Oman. We see PTTEP's reserve life as a credit weakness because it is lower than that of similar rated peers globally. Partex will add about 65 million barrels of oil equivalent (mboe) of proven and probable (2P) reserves to PTTEP's about 1,000 mboe 2P reserves. The

...June 18, 2019 SINGAPORE (S&P Global Ratings) June 18, 2019--S&P Global Ratings today said that the proposed acquisition by PTT Exploration and Production Public Co. Ltd. (PTTEP; foreign currency ###+/Stable/--; local currency A-/Stable/--) of Partex Holding B.V. will modestly enhance PTTEP's reserve life without materially affecting its financial headroom. The US$622 million acquisition is likely to be completed toward the year-end. Partex has equity considerations in seven projects in five countries, with focus on operating assets in Oman. We see PTTEP's reserve life as a credit weakness because it is lower than that of similar rated peers globally. Partex will add about 65 million barrels of oil equivalent (mboe) of proven and probable (2P) reserves to PTTEP's about 1,000 mboe 2P reserves. The 2P reserve enhancement is about 6%, or less than 0.25 years of the company's reserve life. In addition, PTTEP's production will increase by 16,000 boe a day, about 4% of its daily production of...

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