PTT Exploration: Mulling additional stake in Mozambique's Rovuma offshore block
BY ORANAN PAWEEWUN
BANGKOK -- PTT Exploration & Production is considering an opportunity to buy an additional stake in Mozambique's Rovuma offshore oil block.
The company hasn't participated in the bidding process and hasn't made a decision yet, Chief Executive Tevin Vongvanich told reporters. "We're entitled to pre-emptive rights to buy an additional stake when other shareholders offer to sell," he said.
Mr. Tevin said two shareholders in the block--Anadarko and Videocon--are seeking buyers for their stakes. They own 10% of the block each. "It's too big for us to buy the entire 20% stake," he said.
PTT Exploration last year acquired Cove Energy PLC for $2.2 billion. Cove Energy owns a 8.5% stake in Rovuma Offshore. PTT Exploration has capacity to raise its leverage by borrowing $3 billion to reach its threshold of debt to equity ratio of 0.5.
The Thai explorer is aggressively seeking stakes in offshore projects to meet rising oil and gas demand against a backdrop of declining production at home. PTTEP seeks to at least double its output, which stands around 300,000 bopd, by 2020.
Dow Jones Newswires