Valeura Energy, a Canadian oil and gas company, has successfully completed an internal reorganisation of its subsidiaries in Thailand. This move is expected to enhance the financial and operational management of its assets in the Gulf of Thailand. Previously holding interests only in the Wassana field, the restructuring now places Valeura Energy (Thailand) as the sole holder of working interests in the Nong Yao, Manora, and Wassana fields, collectively known as the Thai III assets.
Dr. Sean Guest, President and CEO, expressed confidence in the benefits of this integration, highlighting that the unified structure unlocks greater efficiency and value. He stated that combining these assets creates an opportunity for operational improvements and financial optimisation, surpassing what was achievable when managed separately.
The company anticipates significant gains in operational efficiency and cost management under the new arrangement. These include streamlined contracting, consolidated procurement, and the utilisation of substantial historical tax loss carry-forwards, amounting to $397 million as of September 2024. Additionally, the petroleum income tax for these assets will now be assessed collectively, although remaining obligations under the prior structure must be resolved within 30 days.
Valeura’s Thai I asset, the Jasmine field, remains unaffected by this restructuring due to its separate fiscal framework and subsidiary arrangement. Meanwhile, Nong Yao C achieved first oil production in August, with three of the seven planned wells now operational. Further development is ongoing to expand production from this licence.
In contrast, the Wassana field experienced a temporary suspension of operations in July following the detection of a superficial crack in the Ingenium mobile offshore production unit (MOPU). Subsequent underwater inspections confirmed the anomaly posed no structural risk, and the company has plans to resume production shortly.
Valeura Energy’s strategic reorganisation marks a significant milestone, reinforcing its commitment to operational efficiency and maximising shareholder value from its Gulf of Thailand assets.
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.
