Valeura Energy, a Canadian oil and gas company, is preparing to resume production at one of its oil fields in the Gulf of Thailand. Operations at the Wassana field were halted in late June after an anomaly was detected on one of the legs of the field’s mobile offshore production unit (MOPU), Ingenium. The suspension was a precautionary measure to ensure safety. However, following an underwater inspection, it was determined that the crack in the weld was superficial and did not compromise the structural integrity of the facility.
With this assurance, Valeura is set to restart production within the week, aiming to return to pre-suspension output levels of approximately 5,000 barrels of oil per day. The company remains committed to maintaining high safety standards, including conducting regular underwater inspections of its operations.
Sean Guest, Valeura’s President and CEO, expressed satisfaction with the swift verification of the MOPU’s integrity, which allows the company to safely resume operations at the Wassana field. He also highlighted the ongoing efforts to expand the field’s output through an active infill drilling campaign. Additionally, Valeura is advancing the front-end engineering and design work for a potential large-scale redevelopment of the Wassana asset, with a final investment decision anticipated by the end of 2024.
The Wassana field, part of license G10/48 and fully owned by Valeura, contains an estimated 12.9 million barrels of oil in proven and probable reserves. Alongside the current drilling activities, the company is exploring options for a broader redevelopment of the field.
In a related development, Valeura recently acquired the floating storage and offloading (FSO) vessel Aurora, which operates at the Nong Yao field, where the company holds a 90% interest. This acquisition is expected to enhance operational flexibility, optimize processes, and reduce costs. Additionally, Valeura completed an infill drilling campaign at the Nong Yao A platform and initiated development drilling at the Nong Yao C extension. The drilling at Nong Yao C, expected to last about four months, includes up to nine wells and is targeting peak oil production rates of 11,000 barrels per day, with first oil anticipated in the third quarter of 2024.
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.
