Thailand's PTT Exploration and Production PCL and China's biggest oil producer, PetroChina, are in final talks with Royal Dutch/Shell for its exploration and production assets in Thailand, Thai officials said Monday.
Energy ministry officials told Reuters the deal, which would include assets estimated at $1 billion, could be finalised on Monday and announced on Tuesday.
"There are several bidders for the assets, but PTTEP and PetroChina are the two strongest candidates," a senior energy ministry official told Reuters.
"If all conditions are agreed at today's meeting, the result could be announced tomorrow," he said. The official did not say what those conditions were.
A PTTEP official said it was unclear if one or two bidders would be selected for the 100 percent stake in Thai Shell Exploration and Production.
PTTEP, 63 percent owned by Thailand's top energy firm, PTT PCL, told the Stock Exchange of Thailand early this month it was in negotiations to buy Thai Shell.
The takeover would include full ownership of Block S1, which includes the 20,000 barrel-per-day Sirikit oil field, Thailand's largest onshore oil field.
Thai Shell is the operator and holds a 75 percent stake, while PTTEP holds the other 25 percent stake in the field.
A PetroChina spokesman in Beijing declined to comment on the deal.
Thai Shell Managing Director Luechai Wongsirasawad told Reuters the deal was "very close to being finalised". He gave no other details.
Global oil majors, including Shell, have been considering selling down non-strategic assets in Asia as they shift attention to returns rather than asset growth.