Valeura Energy Greenlights Wassana Oil Field Redevelopment off Thailand

Wednesday, May 14, 2025

Canada-based oil and gas company Valeura Energy has taken a final investment decision (FID) to redevelop the Wassana oil field in the Gulf of Thailand, committing $120 million to replace aging infrastructure and boost production.

The redevelopment plan for the field, in licence G10/48, includes installing a new central processing platform (CPP) to replace the current mobile offshore production unit (MOPU), constrained by the end-of-life expected at the end of 2027.

Given this limited life, it is only possible to recover approximately 2.5 mmbbls of oil with the current production facility. The facility is also limited in the number of future development wells that could be drilled and has insufficient oil and fluid processing capacity to recover the expected reserves and resources of oil in the license.

The newbuild CPP will have capacity for 24 well slots and is expected to extend the field’s life by 16 years to 2043.

The CPP, which mirrors the specifications of the company’s Nong Yao A facility, has been designed to also accommodate future growth opportunities through the eventual tie-in of additional oil accumulations both to the north and to the south of the Wassana field.

First oil from the redeveloped field is expected in the second quarter of 2027. Peak production is projected at 10,000 barrels per day, up from current output of around 3,700 bpd.

Thailand-based Thai Nippon Steel Engineering & Construction has been selected as the Engineering, Procurement, Construction, and Commissioning (EPCC) contractor.

The CPP will also be configured to include two risers, to enable it to tie in satellite accumulations to the north and south of the main field.

Accumulations of oil have already been identified to the north of Wassana at the Nirami field, which may form the basis for one satellite development, and the company is reprocessing 3D seismic south of the Wassana field in the vicinity of the Mayura oil discovery to support further appraisal drilling in this area.

Development of these satellites would extend both the plateau production from the CPP and also the ultimate field life, Valeura said.

The current plan is for the CPP to be fully installed and ready to commence development drilling at approximately the end of 2026.

The initial drilling campaign comprises 16 horizontal development wells and one water injection well. Based on rig rates that the company contracted in 2024, the estimated cost of each development well is approximately $4.8 million.

However, Valeura has observed a downward trend in jack-up drilling rig rates and materials in recent months, and therefore anticipates that drilling capex for the Wassana redevelopment may be lower if this trend continues.

Valeura holds 100% interest in the G10/48 license, which includes the Wassana field. The company said the project aligns with its broader Southeast Asia growth strategy and capital discipline objectives.

Categories: Industry News Activity Asia Gulf of Thailand Oil and Gas

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