S&P: PTTEP's acquisitions in Indonesia have no effect on ratings

(Singapore, Dec. 2, 2013) -- Standard & Poor's Ratings Services said today that its rating on PTT Exploration and Production Public Co. Ltd. (PTTEP: BBB+/Stable/--; axA+/--) is not affected by the company's agreement to acquire Hess Corp.'s stakes in energy projects in Indonesia.

Based on the available information, the transaction's size, associated development expenditure, and the source of funds for the deal are in line with our base-case assumptions for PTTEP's investment strategy. We forecast the company to maintain its debt-to-EBITDA ratio at 1.0x-1.5x over the next two to three years.

PTTEP announced the joint signing of share purchase agreements with PT Pertamina (Persero) for their subsidiaries to acquire the subsidiaries of Hess, which hold 75% in the Pangkah Project and 23% in the Natuna Sea A Project, both off the shores of Indonesia. The transaction is not subject to any government regulatory approvals. However, the existing partner in the Pangkah project has 30 days from signing of the agreement to exercise its pre-emptive right. (ends)