Canada-based oil and gas company Valeura Energy has signed a farm-in agreement with Thailand’s state-backed PTTEP to acquire a 40% interest in offshore Blocks G1/65 and G3/65 in the Gulf of Thailand, marking a major expansion of its regional footprint.
The strategic deal increases Valeura’s gross offshore acreage in Thailand from 2,623 to 22,757 square kilometers. The blocks are located adjacent to some of the country’s largest producing fields, including PTTEP-operated Erawan, Platong, Benchamas, and Bongkot, and near Valeura’s own Jasmine, Ban Yen, and Nong Yao oil fields.
The blocks contain 15 oil and gas discoveries confirmed by 27 wells, and initial exploration drilling and appraisal activity is already underway. Four wells were drilled in early 2025 and a 3D seismic campaign covering over 1,200 km2 is scheduled to begin in the coming months.
“This partnership with PTTEP provides an exceptional platform for infrastructure-led growth. It aligns with our strategy to diversify and expand in proven, resource-rich areas with clear development pathways,” said Sean Guest, Valeura CEO.
Under the farm-in terms, Valeura will pay 40% of back costs amounting to $14.7 million as of June 30, 2025, and will also fund a portion of additional seismic acquisition of 165 km2 on Block G3/65. PTTEP will retain operatorship with a 60% stake.
The Production Sharing Contracts (PSCs) governing the blocks allow for a six-year exploration period ending in May 2029, with provisions for extensions and subsequent 20-year production terms. During the PSCs validity period, a total of eight wells must be drilled (five on G1/65 and three on G3/65), and 800 km2 of 3D seismic must be acquired (500 km2 in G1/65 and 300 km2 in G3/65).
Both blocks contain prospects viewed by Valeura as tie-back candidates to existing infrastructure, offering fast-track development potential.
Block G1/65 lies adjacent to the prolific Pattani Basin and includes the Jarmjuree South area, where three appraisal wells were recently drilled, and the Maratee-Bussaba trend, a structurally complex oil-prone region.
Block G3/65 borders the North Malay Basin and Valeura’s Nong Yao field. Key targets include Nong Yao North-East and Bussabong-Angun, the latter of which has shown gas pay and is viewed as a top candidate for Valeura’s first gas reserves in Thailand.
The deal is subject to approval by Thailand’s Ministry of Energy.
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