Valeura Energy reaches FID on Wassana field redevelopment in Thailand

Valeura Energy has announced the final investment decision (FID) regarding the redevelopment of the Wassana field, which is expected to significantly enhance the value of shareholders.

The field, located in the G10/48 license, is located with the 100 % interest that Valeura holds, outside in the Gulf of Thailand.

Re -development includes building a new central treatment platform (CPP) to completely improve the potential of the mass.

The Wassana Field is expected to give the first oil by the second quarter of 2027, with the expected peak production rate of 10,000 barrels per day (BPD), more than two and a half times the current output.

The company has informed a significant increase in the potential reserves that have been proven (2p) to 20.5 million barrels (MBBL), which represents an increase of 18MBB compared to the continuous production of infrastructure.

The extension of the field of the field until 2043, which is a 16 -year -old increase, highlights the redevelopment plan.

The estimated investment in establishments over the next two years is $ 120 million, with $ 40 million allocating for 2025 and the rest for the year 2026. This investment will be fully funded from the company’s public budget.

The redevelopment process is expected to be more accumulated, with the net value of Wassana 2p before increasing taxes to 218 million dollars, which is equivalent to adding the value of the $ 1.23 net assets ($ 0.88) per share.

Economics are strong and flexible, with an estimated rate of internal return at $ 60 at $ 60 a barrel in Brent oil and a 18 -month recovery period.

The current production of the Wassana field is through the mobile marine production unit (MPU), which has an expected end of life by the end of 2027.

MPU restrictions in terms of well drilling, oil treatment and liquids have necessitated redevelopment. In addition, the MPU and the processing system led to the highest OPEX modification unit between Valeura origins in the Gulf of Thailand.

After reviewing the various redevelopment concepts, a new Valeura CPP chose with 24 well -known production openings to achieve the highest financial returns and the maximum oil recovery limit from the G10/48 license.

The new CPP will enable more large -scale pits and longer lifting life, which increases the generation of cash flow.

Thai Nippon Steel Engineering & Construction was chosen for engineering, purchases, construction and assignment from the new facility.

The contracting strategy with the company guarantees more than 80 % of the CAPEX establishment of $ 120 million under fixed price obligations, with long -term major elements.