Valeura Energy Makes FID on Wassana Field in Gulf of Thailand

Valeura Energy Inc. said it has made a final investment decision (FID) on the redevelopment of the Wassana field in License G10/48 offshore in the Gulf of Thailand.

The redevelopment of the Wassana field will be done through a new-build central processing platform to optimize full block potential, the company said in a news release, adding that the project will extend the end-of-field life by 16 years to 2043.

The new platform will replace the existing mobile offshore processing unit production infrastructure and is expected to allow for a more holistic commercialization of the field’s oil reserves by enabling a more aerially extensive drilling reach, according to the release.

First oil is expected in the second quarter of 2027, with peak field production of 10,000 barrels per day (bpd), which is more than 2.7 times current output from the field, Valeura said.

The total capital expenditure for the new platform and all of the export pipelines and facilities is estimated at $120 million, of which around $40 million is planned to be spent this year, with the remainder in 2026, the company said.

Valeura said it aims for the platform to be fully installed and ready to start development drilling at the end of 2026. The initial drilling campaign consists of 16 horizontal development wells and one water injection well. Based on rig rates that the company contracted in 2024, the estimated cost of each development well is approximately $4.8 million, the company noted.

Once the initial development wells are completed, management estimates that the Wassana field will produce oil at rates of 10,000 bpd in the second half of 2027. The target plateau rate for the new platform is above 7,500 bpd after the existing unit is decommissioned in late 2027.

Wassana’s proved plus probable (2P) reserves is estimated to increase to 20.5 million barrels, representing an increment of approximately 18 million barrels compared to continuing production with existing infrastructure only, Valuera said.

Valeura President and CEO Sean Guest said, “Our final investment decision to pursue the Wassana redevelopment project is a milestone for Valeura. Since assuming operatorship, we have identified substantially more reserves than were initially estimated at the Wassana field. Beyond the significant increase in reserves and extension of field life, this project is expected to significantly increase production from the field to 10,000 [bpd] in the second half of 2027, at anticipated unit Adjusted Opex reflecting a reduction of approximately two-thirds versus current rates”.

“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. This approach has been highly successful in both our Jasmine and Nong Yao fields,” Guest continued.”

Our financial position allows us to fully fund this development through existing cash reserves, without compromising our balance sheet strength. The project’s solid economics across various price scenarios demonstrates our disciplined approach to capital allocation and our commitment to creating sustainable value for our shareholders,” he concluded.

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