Valeura Energy Asia Pte. Ltd., a special purpose vehicle and a subsidiary of Valeura Energy Inc., Calgary, has agreed to acquire the Thailand upstream oil producing portfolio of Busrakham Oil and Gas Ltd., a subsidiary of Mubadala Energy, from Mubadala Petroleum (Thailand) Holdings Ltd.
The acquisition consists of operated interests in three offshore licenses in the Gulf of Thailand that include Nong Yao, Jasmine/Ban Yen, and Manora oil fields, which collectively currently produce about 21,200 b/d of oil, net to the interest being acquired, Valeura said in a release Dec. 6.
Consideration is $10.4 million plus up to an additional $50 million, contingent upon certain upside price scenarios.
The deal includes opportunities for both near-term production growth and field life extension through infill drilling, the company said.
“Our forward efforts will focus on developing the potential of these assets, by projects including further development of Nong Yao field where we are forecasting peak production rates in 2024, re-investment into Jasmine and Ban Yen fields to continue their long history of reserves replacement, and on selective step-out opportunities where we see the potential to more fully utilize the fields’ extensive infrastructure to commercialize new accumulations,” said Sean Guest, president and chief executive officer.
As of the end of 2021, the assets held 24.1 million bbl of estimated 2P oil reserves, representing a four-fold increase over Valeura’s pre-existing corporate reserves, Guest continued.
The seller’s organization in Thailand and support infrastructure including supply bases, warehouses, and offices will join Valeura, which includes almost all of the seller’s 180 Thailand-based employees.
Valeura Energy will acquire operatorship and a 90% working interest in license G11/48, which contains the partially developed Nong Yao oil field. The 10% partner, Palang Sophon Ltd., is also Valeura’s partner in its G10/48 license, acquired earlier this year. Nong Yao field lies in the central portion of the Pattani basin of the Gulf of Thailand, some 160 km offshore in 75 m water depth. Current production is about 8,100 b/d, net to the 90% working interest.
The field has been thus far developed from two interconnected fixed platforms, including 37 wells and a processing plant. Processed oil is stored in a leased floating storage and offloading vessel and is offloaded to shuttle tankers for international sale. Production is light, sweet crude oil.
Further development activities are under way on the license, in support of commercializing a southeastern area of the field known as the Nong Yao extension. The project seeks to add a new mobile offshore production unit (MOPU) which will be connected by pipeline to the existing infrastructure and to drill an additional 12 development wells. Construction of the MOPU is under way, with mobilization expected in fourth-quarter 2023 and commissioning and drilling activity scheduled to take place immediately thereafter.
Valeura will acquire operatorship and 100% interest in license B5/27, which contains the developed Jasmine and Ban Yen oil fields, which lie in the northern portion of the Pattani basin of the Gulf of Thailand, some 180 km offshore and in 60 m water depth.
Current production is about 10,100 b/d. The company anticipates mitigating natural production decline through infill drilling and further development opportunities.
The fields have been developed through a total of six fixed topside platforms and a leased FPSO. The infrastructure includes well slots for 132 wells, of which 110 slots are used by producer wells and 22 slots by injection and disposal wells. Processed oil is stored at the FPSO and is offloaded to shuttle tankers for sale into the domestic Thai market. Production is light, sweet crude oil.
Ongoing infill development drilling is under way, which has included nine wells drilled to date in 2022 plus 19 further wells planned over 2023-26.
Valerua also will acquire operatorship and a 70% working interest in license G1/48, which contains the developed Manora oil field. Tap Oil holds 30% interest. The oil field lies in the Kra sub-basin, a north-west extension of the Pattani basin in the Gulf of Thailand, some 84 km offshore and in 45 m water depth.
Current production at the oil field is 3,000 b/d, net to the 70% working interest.
The Manora oil field has been developed by a single fixed wellhead and processing platform and a leased FSO vessel. The platform includes 30 well slots, of which 15 are used by production wells and seven by injection and disposal wells. Processed oil is stored in the FSO and is offloaded to shuttle tankers for international sale. Production is medium-weight, sweet crude.
Manora field is a mature asset for which a decommissioning plan has been prepared and submitted to Thailand’s upstream regulator. The plan contemplated an end to the field’s economic life in 2022, but recent activity has changed the outlook. Two infill development wells drilled in this year’s fourth quarter encountered oil and planning is under way to bring the wells online. Information from the wells is expected to be incorporated into a future reserves evaluation and future planning for the field as part of an aim to extend its current economic limit of early 2025.