Horizon Oil Ltd. has agreed to acquire ExxonMobil’s stakes in three onshore development licenses in Thailand, marking its return to the region. The deal gives Horizon a 60% stake in the E5 block, which includes the producing Nam Phong gas field, and smaller stakes in E5N and EU1, which contain the Sinphuhorm gas and condensate field.
The acquisition is through a consortium, with Horizon taking 75% of ExxonMobil Exploration and Production Khorat Inc. (EMEPKI) and Matahio Energy acquiring the remaining 25%, managing employees and operatorship of Nam Phong.The acquisition adds 2,000 boe/day to Horizon’s output and 3.9 million boe in reserves. Horizon aims to boost value through field life extension, infill drilling, and upgrades.
Gas is contracted long-term to PTT for regional power.Horizon will pay $30M for 75% of EMEPKI, plus up to $7.5M in conditional payments. The deal is largely funded by a Macquarie Bank debt amendment. CEO Richard Beament said the partnership with Matahio aligns with Horizon’s non-operator strengths and offers upside.
Thailand is a familiar market for Horizon, having explored offshore there from 2006 to 2008, CEO Richard Beament noted. Financial constraints at the time led to its exit, but the company has always seen Thailand as a strong investment opportunity.The acquisition is expected to boost net operating cash flow for over five years and establish a solid production base into the next decade.
The assets diversify Horizon into gas production in a market with rising demand, supplying a key power station that supports Thailand’s energy needs and transition goals.
