(EnergyAsia, April 29 2014, Tuesday) — Thailand’s state-owned upstream firm PTTEP said it will boost its hydrocarbon production by 17,000 of oil equivalent (boed) with the US$1 billion acquisition of Hess Corp’s stakes in four active blocks in the country. The US firm owns a 15% stake in block B12/27 comprising the Pailin, Morakot and Ubon fields, a 15% share in block G7/50 of the Contract 4 project, and a 35% interest in blocks EU-1 and E5 north of the Sinphuhorm project.

Located in the Gulf of Thailand off Songkhla province, Contract 4 produces 387 million cubic feet of natural gas per day and 17,528 b/d of condensate, with a total proved and probable reserves (2P) of 461 million barrels of oil equivalent (BOE). Upon completion of the acquisition by May, PTTEP will raise its shareholding to 60% with Chevron Corp owning the remaining 40% and continuing as operator.

Located in northeastern Thailand, Sin Phuhorm holds total proved and probable reserves of 45 million BOE, and produces 113 million cubic feet per day of gas and 496 b/d of condensate. PTTEP will raise its current 20% stake to 55% and take over as the project’s operator.

PTTEP is targeting to raise production from nearly 330,000 boe/day last year to 600,000 boe/day by 2020.

Law firm Herbert Smith Freehills advised PTTEP on its all-cash purchase of Hess Corp’s assets.

Herbert Smith Freehills said its team was led by the managing partner of its Seoul office, Lewis McDonald, with support from Thai lawyers in the firm’s offices in Bangkok and other parts of Asia.

The firm also advised on PTTEP’s ventures including its acquisition of a 40% stake in the Kai Kos Dehseh Oil Sands Project in Canada in 2011.