Herbert Smith advises PTTEP on its acquisition

Published 22 October 2010

The Herbert Smith Asian energy team advised PTT Exploration and Production Public Company Limited (PTTEP) as international legal counsel on its acquisition of a 40% stake in the Kai Kos Dehseh Oil Sands Project (KKD) in Canada. The transaction was completed through the purchase of 40% of the partnership units of Statoil Canada Partnership (SCP) for a total consideration of US$ 2.28 billion on 22 November 2010.

KKD is one of the largest oil sands deposit in Canada with 257,200 acres of acreage and an estimated 2.7 billions barrel of bitumen resources, which includes 57 million barrel of proved reserves. The acquisition provides PTTEP with access to oil sands deposit in Canada and the opportunity for future growth into unconventional resources.

KKD phase I development will contribute its production by early 2011 at approximately 10,000 barrel per day (bpd). By 2014, the production is expected to reach 40,000 bpd and to 100,000-120,000 bpd by 2017. The project is anticipated to reach its peak production of 250,000 bpd by 2025.

The Herbert Smith team was led by Anna Howell, head of Asia energy practice and senior associate Hilary Lau, assisted by associates Michele Ryan, Olivia Schofield and Anna Giudice and trainee Stephanie Harper.

Blake, Cassels & Graydon LLP acted as PTTEP's Canadian counsel and Statoil were represented by Bennett Jones LLP in Calgary and Vinson & Elkins LLP, London.

Anna Howell commented:

"PTTEP and Statoil concluded this acquisition within a short time frame. We are very pleased to work with our long term client PTTEP on this successful transaction which represents a further step in their goal of becoming a major player in Asia and across the world. This deal further demonstrates our capability to assist energy companies, such as PTTEP, with fast-moving complex cross border M&A transactions."