Valeura Energy reaches FID on Wassana field redevelopment in Thailand

Valeura Energy has announced the last concern determination (FID) connected the redevelopment of the Wassana field, which is expected to substantially heighten shareholder value.

The field, located successful Licence G10/48 with a 100% involvement held by Valeura, is situated offshore the Gulf of Thailand.

The redevelopment includes the operation of a caller cardinal processing level (CPP) to afloat optimise the imaginable of the full block.

The Wassana tract redevelopment is projected to output archetypal lipid by the 2nd 4th of 2027, with an expected highest accumulation complaint of 10,000 barrels per time (bpd), much than 2 and a fractional times the existent output.

The institution has reported a important summation successful proved positive probable (2P) reserves to 20.5 cardinal barrels (mbbl), representing an increment of 18mbbl compared with the existing infrastructure's continued production.

The hold of the field's beingness to 2043, a 16-year increase, is different item of the redevelopment plan.

The estimated concern successful facilities implicit the adjacent 2 years is $120m, with $40m allocated for 2025 and the remainder for 2026. This concern volition beryllium afloat funded from the company's equilibrium sheet.

The redevelopment is expected to beryllium highly accretive, with the Wassana 2P nett contiguous worth earlier taxation expanding to $218m, equating to a nett plus worth summation of C$1.23 ($0.88) per share.

The economics are beardown and resilient, with an estimated 40% interior complaint of instrumentality astatine $60 per tube Brent lipid prices and a payback play of 18 months.

The existent accumulation from the Wassana tract is done a mobile offshore accumulation portion (MOPU), which has an expected end-of-life by the extremity of 2027.

The MOPU's limitations successful presumption of good drilling capableness and lipid and fluid processing person necessitated the redevelopment. Additionally, the MOPU's property and processing strategy person resulted successful the highest portion adjusted opex among Valeura's assets successful the Gulf of Thailand.

After reviewing assorted redevelopment concepts, Valeura has chosen a caller CPP with 24 accumulation good slots arsenic the optimal solution to execute the highest fiscal returns and maximum lipid betterment from the G10/48 licence.

The caller CPP volition alteration much extended drilling and a longer installation plan life, starring to accrued currency travel generation.

Thai Nippon Steel Engineering & Construction has been selected for the engineering, procurement, operation and commissioning of the caller facility.

The company's contracting strategy ensures much than 80% of the $120m installation capex is nether fixed terms commitments, with cardinal long-lead items already secured.