Thailand's Bangchak Corporation said it has divested its Philippines-focused oil and gas upstream subsidiary with four offshore production sharing contracts to Australia's Sacgasco.

Bangchak said in a Thai stock exchange announcement it had executed a share purchase agreement to sell all shares held in its wholly-owned subsidiary BCP Energy International to Australian-listed Sacgasco.

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The transaction was completed on 2 July 2021. No rationale or further details were provided for the divestment.

Sasgasco said in a separate announcement the acquisition covered six offshore oil discoveries with exploration and development potential across four service contracts in the Palawan basin.

The deal includes BCP Energy’s fully-owned subsidiary Nido Petroleum and its local team; Nido was acquired by Bangchak in 2017 and delisted from the Australian Stock Exchange.

Sasgasco said the cash consideration for the acquisition was one dollar and included all rights and obligations in the four production sharing contracts - SC 54A, SC 14C2, SC 58, SC 6B and a grouping of SC-14A, 14B, 14D.

There are no near-term commitments, and the associated administration costs are relatively low, and Sasgasco is evaluating the discovered oil resources in the licences with a view to realising early oil production from them.

Potential development concepts that will allow them to be brought to production may include plans for three currently shut-in wells in the redevelopment of the West Linapacan field and a potential parallel exploration programme.

Andrew Childs, Sacgasco chairman, said: “This is a significant acquisition for us, as it offers huge potential for a small, nimble company such as Sacgasco, in a country we know well. We have always viewed the Nido Petroleum Philippines assets as potentially very attractive, and we have moved quickly to take advantage of Bangchak’s decision that these assets are no longer core to their business."