Valeura Energy, a Canadian oil and gas company, has restructured its operations by consolidating its interests in the Nong Yao, Manora, and Wassana fields under its Thai subsidiary, Valeura Energy (Thailand) Ltd. Previously, only the Wassana field was managed by this subsidiary, but now all three fields in the Thai III fiscal contract are integrated under one entity.
The restructuring aims to improve the operational and financial efficiency of Valeura’s Thai assets. By managing these fields under a single subsidiary, the company expects to streamline contracting and procurement processes while benefiting from cost savings and tax advantages. Notably, as of 30 September 2024, the company has accumulated tax loss carry-forwards valued at approximately $397 million.
This strategic move, initiated following Valeura’s acquisitions in the Gulf of Thailand in 2022 and 2023, is seen as a significant step toward enhancing shareholder value. Sean Guest, President and CEO, highlighted the company’s intent to leverage synergies from the reorganisation, noting that these assets hold more value when unified. The streamlined structure is expected to support reinvestment into Valeura’s Thailand portfolio, with a focus on organic growth and potential acquisitions to expand their portfolio further.
From this point on, the petroleum income tax for the three consolidated assets will be assessed as a single entity under Thailand’s tax code. However, existing tax obligations from the previous subsidiary structure must be addressed within the next month. Tax arrangements for the Jasmine field remain unchanged, as it falls under the separate Thai I fiscal terms and is managed by a different subsidiary.
Valeura Energy Inc (TSX:VLE) is an upstream oil & gas company, with a clear strategy to add value for shareholders. The Company has a strong balance sheet positioning it for potential inorganic growth opportunities in the near/medium-term, and substantial longer-term upside potential through an operated deep, tight gas play.
