Gulf of Thailand Oil Field Revamp Gets Green Light

Wedoany.com Report-May 15, Valeura Energy has approved redevelopment of its 100%-owned Wassana field in license G10/48, Gulf of Thailand, with a new central processing platform (CPP). The project, extending the field’s life to 2043, targets first oil in Q2 2027 and peak production of 10,000 barrels per day, up from 3,700.

Sean Guest, President and CEO, said: “This project is very robust and resilient from an economic standpoint. Even in a lower oil price environment of US$60 per barrel, the development delivers returns of approximately 40% IRR. This economic strength provides downside protection while maintaining upside potential as oil prices strengthen, creating a favourable risk-reward profile for our shareholders.”

The CPP, replacing a mobile offshore production unit set for decommissioning in 2027, includes 24 well slots for 16 development wells and one water injection well. Costing $120 million, with $40 million in 2025, the CPP will be installed by late 2026. Thai Nippon Steel Engineering & Construction oversees its construction.

Guest noted: “Additionally, this development concept is creating opportunities for further growth through a ‘hub and spoke’ model whereby we can potentially tie-in the satellite oil accumulations already discovered both north and south of the main Wassana field.” The CPP supports tie-ins from nearby fields like Nirami and Mayura.

Reserves are now 20.5 million barrels, up 18 million, with operating costs expected to drop significantly. Valeura will fund the project with cash reserves, ensuring financial stability.