Oil & Gas

Mubadala sells stakes in three Thai offshore oilfields

Mubadala Energy has agreed to sell three oilfields offshore Thailand to Valeura Energy. The Canadian company claims the acquisition will make it the largest independent operator of oil production in Thailand.

The acquisition consists of operated interests in three offshore licences in the Gulf of Thailand that include the Nong Yao, Jasmine/Ban Yen and Manora oil fields, which collectively produce approximately 21,200 bbls/d of oil, net to the interest being acquired, Valeura said Tuesday. “The purchase consideration for the acquisition is US$10.4 million plus up to an additional US$50 million, contingent upon certain upside price scenarios. The acquisition has an effective date of August 31, 2022, and is subject to customary closing conditions,” added the company.

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The deal marks a substantial expansion of Valeura’s presence in Thailand, adding a portfolio of cash generative assets, with the following highlights:

Weighted average cash operating costs across the assets of approximately US$22/bbl, comprised primarily of fixed costs associated with offshore facilities.

Total proved plus probable (2P) reserves of approximately 24.1 mmbbls oil.

Near-term production growth opportunity through Nong Yao field development project planned to be onstream in early 2024.

Field life extension opportunities through ongoing infill drilling to continue the assets’ long history of reserves additions, amounting to approximately 80% replacement of produced reserves over the past five years.

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A largely autonomous business unit organisation comprised of an approximately 180-person strong operating workforce in Thailand.

Expected organisational and financial synergies with Valeura’s acquisition of the KrisEnergy Gulf of Thailand assets as announced in Q2 2022.

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