Rio Tinto Sells Assets In Thailand-Cambodia Overlapping Area

CNNMoney.com

BANGKOK -(Dow Jones)- Rio Tinto Ltd. (RTP), one of the world's leading mining companies, said Wednesday it completed the sale of its oil and gas assets in the Thailand-Cambodia overlapping area.

The company has decided to sell its 16.67% stake in Block B7, B8, B9 in the overlapping area and a royalty interest in Block 9A located in the Gulf of Thailand, an official at Rio Tinto told Dow Jones Newswires, declining to give further details.

"The sale has been completed this morning (Australian time)," the official added.

The divestment is aimed to streamline its business portfolio, which focuses on mining and processing mineral resources, said an industry's source.

Another person familiar with the deal said the assets will be sold to BG Group (BG.LN).

BG Group, through BG Asia Inc owns owns 50% stake in the Block B7, B8 and B9. Chevron Overseas Petroleum (Thailand) Ltd. owns 33.33%.

BG Group and Chevron representatives in Thailand weren't immediately available for comment.

Macquarie Group, which is the financial adviser to Rio Tinto, declined to comment.

The concession, covering a total area of 10.4 million square kilometers, was awarded to the group in 1972 but has been inactive since 1975 due to overlapping disputes between Cambodia and Thailand, according to Thailand's Department of Mineral Fuels.

Chevron is the operator of the Block B9A, holding a 51.66% stake.

-By Alex Wilson and Supunnabul Suwannakij, Dow Jones Newswires; 66 2266 0744; tu.suwannakij@dowjones.com