Banpu acquires Barnett natural gas field in the United States from a subsidiary of Exxon Mobil Corporation worth 25 billion baht, expected to be completed in June, enabling Banpu to have gas production capacity. increased to 900 million cubic feet per day
Mrs. Somruedee Chaimongkol, Chief Executive Officer of Banpu Public Company Limited (BANPU), revealed that BKV Corporation (BKV), a subsidiary of Banpu holding 96.12% stake, has signed a purchase agreement to purchase stake in Banpu. Natural gas and midstream business at the Barnett gas field in the United States from XTO Energy, Inc. and Barnett Gathering LLC (XTO), a subsidiary of Exxon Mobil Corporation, with an investment value. amount of 750 million US dollars or equivalent to approximately 25,125 million baht and the total benefit value to the seller in the future is not more than 50 million USD
The investment for this project comes from the company’s cash flow. and support from financial institutions. The said investment is in the process of fulfilling the relevant conditions in the contract It is expected to be completed within June 65.
Such assets are large natural gas fields. with low risk in production This is because it is a source that has both infrastructure and transportation systems. The company is the operator of the production itself, as well as managing the natural gas compression process covering the natural gas pipeline system, which is a production source that meets the demand for natural gas. important in the Gulf of Mexico coastal states of the United States The details are as follows.
1. Covers approximately 160,000 acres of natural gas production in the heart of the Barnett gas field. The benefit in production wells accounted for 93% of the total number of production wells of more than 2,100 wells which are operated by themselves.
2. Being an operator from the natural gas compression process Managing the natural gas pipeline system Covering a distance of 750 miles, it has more than 20 Gas Compressor stations with access to markets with significant demand for natural gas. with the underlying infrastructure already as well as having a wide variety of products both natural gas and natural gas liquefied (NGL)
3. The volume of natural gas production in proportion to the investment is approximately 225 million cubic feet per day. There is a low rate of decline in production. Can generate cash flow continuously
The investment increases Banpu’s total capacity for natural gas business in the United States from approximately 700 million cubic feet per day to 900 million cubic feet per day. and has 1P natural gas reserves from about 4.4 trillion cubic feet to about 5.8 trillion cubic feet which can create synergies with the existing production source and create new investment opportunities for long term growth This natural gas field is already a production facility. It’s an area where BKV is familiar. There is a lower rate of decline due to low production, so there is a lower risk as well. It is also located in a major natural gas demand site in the US Gulf Coast states. It can create added value along the value chain and generate immediate cash flow and will enable BKV to become the largest natural gas producer in the Barnett gas field while generating mutual benefits. both knowledge exchange including technology from operating in existing production sites
This investment is another important step in Banpu’s Greener & Smarter strategy in accelerating business transformation. Expanding the portfolio of cleaner energy and energy technologies, elevating Antifragile across all business segments. to be prepared to deal with all fluctuations including creating new business opportunities for sustainable growth