Valeura Energy boosts offshore Thailand portfolio with PTTEP deal

Four exploration wells will be drilled.

Valeura Energy Inc. has inked a farm-in agreement with PTT Exploration and Production Plc (PTTEP), through its subsidiary, PTTEP Energy Development Company Limited, for Blocks G1/65 and G3/65 in the offshore Gulf of Thailand.

This deal gives Valeura Energy a 40% interest in the project, with the remaining held by PTTEP. This also increases the former’s gross acreage position in Thailand from 2,623 square kilometres (km²) to 22,757 km².

“Acquiring an interest in these Blocks increases our acreage in the offshore Gulf of Thailand substantially, and provides us with existing discoveries and attractive exploration prospects immediately adjacent to several world-class gas fields and our producing oil assets,” said Dr. Sean Guest, president and CEO at Valeura Energy.

The blocks are positioned next to some of Thailand's largest producing gas fields and Valeura Energy’s oil fields. There are 15 oil and gas discoveries on the Blocks, supported by 27 wells which encountered oil and gas pay.

Under the terms of the Farm-in, the companies will work on a programme for 2025 that includes drilling four exploration wells (all recently completed) and acquiring just over 1,200 km2 of new 3D seismic data.  

To earn its interest, Valeura Energy will pay 40% of actual back costs and carry PTTEP on an additional seismic acquisition of approximately 165 km2 on Block G3/65, located to the northeast of the Nong Yao field.

The Blocks are governed by the terms of Production Sharing Contracts (PSC) granted by the Thai Government through the Ministry of Energy. Closing of the farm-in is subject to the approval of the Government of Thailand.