Valeura Energy becomes largest independent oil producer in Thailand with Mubadala Petroleum deal

Canadian independent Valeura Energy has boosted its Thai upstream portfolio with the acquisition of stakes in four producing oilfields from UAE’s Mubadala Petroleum.

Valeura on Wednesday confirmed it had completed the “transformative” acquisition of the Gulf of Thailand assets — a deal was agreed late last year.

Through its wholly-owned subsidiary, Valeura Energy Asia, the Canadian player now has a 100% operated interest in Block B5/27 that is home to the Jasmine and Ban Yen oilfields.

It also gets a 90% operated working interest in Block G11/48 containing the Nong Yao oilfield and a 70% operated working interest in Block G1/48 where the Manora oilfield is located.

Valeura earlier said that the assets combined produce 21,200 barrels per day of oil net to the interest being acquired.

The purchase price is US$10.4 million plus up to an additional US$50 million, contingent upon certain upside price scenarios.

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Also, there is a decommissioning component included in the acquisition, and the Canadian company has said costs have been estimated to be a net US$214 million on an undiscounted basis.

All net economic benefits accumulated from 1 September 2022 are included within this acquisition.

Valeura last year acquired KrisEnergy’s Thailand portfolio, which included the Wassana and Rossukon fields, and should provide synergies with the ex-Mubadala assets.

“With our expanded asset base, we can now begin to realise synergies across our operations, unlocking even more value for our stakeholders, while remaining mindful of our primary focus on safe, reliable operations. [We] look forward to charging ahead together as the largest independent oil producer in Thailand,” commented Valeura chief executive Sean Guest.

“At the same time, our growth ambitions remain at the core of our forward strategy. We intend to pursue the organic growth opportunities within our portfolio, as well as further inorganic opportunities in Southeast Asia.

The Canadian operator has commissioned consultants Netherland, Sewell & Associates to perform a reserves and contingent resources evaluation for all of its Thai assets effective 31 December 2022 and will publish results in due course.

Valeura intends to announce its 2022 full year and fourth quarter 2022 consolidated financial and operating results on 30 March.