Thailand’s state-owned PTT Exploration and Production (PTTEP) is expanding in the Middle East with the $622 million acquisition of Partex Holding that will give it producing assets in Oman and other oil and gas projects in five countries.

The national upstream company will gain a 2% stake in Oman’s largest producing onshore asset, PDO (Block 6 project), through the deal to acquire the entire equity of Partex from Calouste Gulbenkian Foundation.

The project, operated by Petroleum Development Oman, covers about 100,000 square kilometres — about a third of the country’s area — and produced about 610,000 barrels per day of crude last year, or around 70% of the sultanate’s total oil output.

Further assets to be acquired include a 1% interest in the Occidental Petroleum-operated Mukhaizna oilfield in Oman’s Block 53, a 2% stake in the 10.4 million tonnes per annum Oman LNG project and a 2% interest in Adnoc Gas Processing operated by Abu Dhabi National Oil Company, as well as holdings in projects in Kazakhstan, Brazil and Angola.

“This acquisition is not only a gateway for PTTEP to invest in one of the strategic areas of the Middle East’s oil and gas business, but also allows us to create new business partnerships with both [the] national oil companies of Oman and the United Arab Emirates, and world-class oil and gas players as we follow our ‘Expand and Execute’ strategy,” said PTTEP chief executive Phongsthorn Thavisin.

The Partex acquisition is expected to complete in the fourth quarter of this year.

“This diversified self-funded portfolio will not only provide the immediate revenue stream, production and reserves, but also strengthen our relationship with the local governments, paving a strong path for us to expand our future exploration and production investments in this region,” said PTTEP.

It will add petroleum sales volume of 16,000 barrels of oil equivalent per day and boost the Thai company’s proved and probable reserves by around 65 million barrels of oil equivalent, based on its net working interest in each project.

Partex has interests in seven projects in five countries, with its main focus on Oman and the UAE.

Outside of the Middle East, the company holds 20% in the Total-operated Dunga producing oilfield in Kazakhstan, a 50% operating stake in the producing Potiguar oilfield off Brazil and a 2.5% stake in Block 17/06 off Angola, a pre-development asset for which operator Total intends to soon take the final investment decision.

PTTEP earlier this year gave its upstream portfolio another significant boost with the $2.1 billion acquisition of Murphy Oil’s Malaysian exploration and production assets and the companies are understood to be in talks regarding the Thai player also buying Murphy’s Brunei interests.

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PTTEP takes out Partex and opens up in Oman