Oil & gas firm takes ownership of FSO working at its field offshore Thailand

Canada-based oil and gas company Valeura Energy has wrapped up the acquisition of a floating storage and offloading (FSO) vessel, which is deployed at one of its fields off the coast of Thailand.

MOPU TSeven Shirley; Source: T7 Global

After exercising its purchase option to get a hold of the FSO Aurora in February 2024, Valeura Energy has completed its acquisition of the FSO located at its Nong Yao field in the Gulf of Thailand. The vessel was previously leased from a member of the Omni Offshore Terminals group.

The company paid $19 million for the FSO Aurora through cash resources, thus, the transaction was completed on June 11, 2024, with the final handover occurring offshore, on the vessel itself. Valeura’s reason for buying the FSO lies in its belief that owning the unit will provide operational flexibility, enabling the firm to optimize and reduce operating expenses.

Recently, the Canadian player completed an infill drilling campaign at Nong Yao A with Borr Drilling’s Mist jack-up rig and embarked on development drilling on the Nong Yao C extension in the Gulf of Thailand, both part of the Nong Yao oil field, where the firm holds 90% operated working interest.

Both recently drilled production-oriented horizontal wells at the Nong Yao A wellhead platform were brought online as producers. This drilling campaign at the Nong Yao C asset encompasses up to nine gross wells, including six producer wells and three water injectors. 

The first oil from the Nong Yao C development is targeted for Q3 2024. The mobile offshore production unit (MOPU) TSeven Shirleyrepresenting T7 Global’s first foray into Thai waters, serves as the wellhead production platform for this field development.