UAE energy major sells Thai upstream assets

Canadian independent Valeura Energy has bolstered its Thai upstream portfolio by acquiring stakes in four producing fields from the UAE’s Mubadala Petroleum.

Valeura confirmed on Wednesday that it had completed a “transformation” acquisition of assets in the Gulf of Thailand – a deal struck late last year.

Through its wholly-owned subsidiary Valeura Energy Asia, the Canadian company now owns 100% of the operating interest in the B5/27 block, where the Jasmine and Ban Yen fields are located, and a 90% operating interest in the G11/48 block, including the Nongyao field and the Manora 70% of the operating interest in block G1/48 where the oilfield is located.

Based on the acquired interests, the assets could produce 21,200 barrels of oil per day, Valeura said earlier.

The purchase price is $10.4 million, plus up to $50 million, subject to certain upside price scenarios. Also included in the acquisition is the decommissioning component, which the Canadian company said cost an estimated net $214 million on an undiscounted basis.

All net economic benefits accruing from September 1, 2022 are included in the acquisition.

Valeura’s acquisition last year of KrisEnergy’s Thailand portfolio, which includes the Wassana and Rossukon fields, should create synergies with the former Mubadala assets.

“With our expanded asset base, we can now begin to realize synergies across our operations, unlocking additional value for our stakeholders, while maintaining our primary focus on safe, secure operations. [We] Looking forward to moving forward together as Thailand’s largest independent oil producer,” commented Sean Guest, CEO of Valeura.

“At the same time, our growth ambitions remain at the core of our strategy going forward. We intend to pursue organic growth opportunities across our portfolio and more inorganic growth opportunities in Southeast Asia.

The Canadian operator has commissioned consultants Netherland, Sewell & Associates to conduct a reserves and contingent resource assessment for all of its Thai assets, effective Dec. 31, 2022, and will publish the results in due course.

Valeura plans to announce its consolidated financial and operating results for the full year 2022 and the fourth quarter of 2022 on March 30.