Valeura Energy Completes Thai Units Restructuring
Canadian petroleum and natural gas exploration and production company Valeura Energy Inc. has completed an internal restructuring of its Thailand subsidiaries.
The company said in a media release that its working interests in all its Thai III fiscal contracts, covering the Nong Yao, Manora, and Wassana fields, are now held by Valeura Energy (Thailand) Ltd., a wholly owned subsidiary of Valeura, which previously had only held an interest in the Wassana asset.
Valeura expects to streamline operations and improve financial performance by consolidating its assets. The company anticipates cost savings through shared contracts, procurement, and the pooling of future expenses and historical tax losses. As of September 30, 2024, the company estimates cumulative tax loss carry-forwards of $397 million.
“Today marks a milestone in delivering value for our shareholders and completes the integration work we started after our Gulf of Thailand acquisitions in 2022 and 2023. Early on, we identified the potential for greater efficiency by bringing our Thai III assets together through a re-organization; our team recognized that together, these assets are worth more than the sum of their parts”, Sean Guest, President and CEO, commented.
“Pursuing this type of synergy strengthens our ability to re-invest in the business for the benefit of all stakeholders. We intend to continue investing directly into the many organic growth opportunities inherent in our Thailand portfolio, and also seeking new ways to provide further value, including through acquisition-led growth”, Guest said.
Effective immediately, Thailand's income tax provisions will treat the three subject assets as a single entity. This change will impact tax obligations, requiring immediate assessment and settlement within 30 days. However, the tax arrangements for the Jasmine field, operating under a different fiscal regime, will remain unaffected, the company said.
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