Herbert Smith Freehills has advised Thailand state-owned PTT Exploration and Production Public Company Limited (PTTEP) on its US$1 billion acquisition of oil and gas assets in Thailand from New York-based Hess Corporation (Hess).
The transaction sees PTTEP acquiring 100% of the shares in Hess Thailand Holdings II Limited (HTH), which in turn owns Hess (Thailand) Limited (HTL) and 100% of the shares in Hess Exploration (Thailand) Co., Ltd (HETCL). The acquisition, which was paid for in cash, gives PTTEP a further 15% stake in an offshore natural gas project in the Gulf of Thailand and a further 35% stake in an onshore gas field in the northeast of the country. The transaction also sees PTTEP taking over operatorship of the onshore gas field.
The acquisition of HTH closed on April 22, 2014 while the acquisition of HETCL is expected to close in May.
The Herbert Smith Freehills team was led by Seoul Managing Partner Lewis McDonald with support from a core Seoul-based team including associate Tom Marshall. Lewis and Tom were supported by Thai lawyers in the firm’s Bangkok office, as well as the wider Asia energy team and specialists from across the firm’s network.
In December, Lewis also led a team of Asia-based Herbert Smith Freehills lawyers including senior associate Paul Tempone in Hong Kong to advise PTTEP on the establishment of a joint venture with Indonesian state-owned oil and gas company PT Pertamina for the purpose of acquiring Hess Corp.’s Natuna Sea A offshore oil and gas asset in Indonesia for US$650 million.
Lewis commented:
“We are delighted to have been able to assist PTTEP on yet another of its major strategic acquisitions. These transactions for PTTEP in Thailand and Indonesia have allowed us to demonstrate the strength and depth of our energy practice across Asia and also the world-class deal execution capabilities of our on the ground corporate team in Seoul.””
PTTEP’s latest venture adds to its strong portfolio of over 40 petroleum exploration and production projects globally. Herbert Smith Freehills has advised on a number of these business ventures, including its acquisition of a 40% stake in the Kai Kos Dehseh Oil Sands Project in Canada in 2011, and the recent restructuring of this project.
Walkers advised PTTEP on Caymans law aspects of the transaction.
Hess Corp. was advised by Freshfields Bruckhaus Deringer, with Maples and Calder advising them on Caymans law and Weerawong, Chinnavat & Peangpanor advising on Thailand law.
