Valeura Energy Progress: First Oil Flows from Nong Yao C in Thailand

On August 15, 2024, Valeura Energy made waves (literally) by pumping its first oil from the Nong Yao C development in the Gulf of Thailand (licence G11/48). Situated in the promising waters separating Thailand and Malaysia, this region isn’t just beautiful – it’s rich with underwater oil reserves that have long fueled the economies of both nations. The Gulf of Thailand is a treasure trove of energy resources, and for decades, Thailand and Malaysia have worked together to unlock these deep-sea treasures. 

Notably, the two countries established the Malaysia-Thailand Joint Development Area (MTJDA) in 1979, a 7,250-square-kilometre zone where they jointly explore and produce hydrocarbons. This partnership has allowed both nations to maximise the potential of the Gulf's resources while sharing the economic benefits equally, setting a precedent for cross-border energy cooperation.

Now, Valeura is diving into the action with their first-ever organic growth project in Thailand. And guess what, the results are already exceeding expectations! This isn't just a routine oil field success – it’s a pretty exciting moment for Valeura as they tap into one of the most coveted energy sources in Southeast Asia.

First Production Success: Starting Strong

Valeura didn't just meet expectations – they exceeded them. Kicking off production at 7,200 barrels per day (bpd), the company is already eyeing a peak of 11,000 bpd within just weeks from starting production. What makes this even more remarkable is that Valeura achieved these production levels under budget, something rarely seen in the oil sector, where costs often spiral upwards. 

CEO, Dr. Sean Guest, praised the efficient drilling program that hit all geological objectives while staying cost-effective, a rare combination in the industry.  The company’s goal is to sustain these high production levels through the remainder of 2024, securing Valeura’s foothold in the region.

Why Nong Yao C? A Calculated Choice

But why Nong Yao C? This offshore region was specifically chosen for its abundant underwater oil reserves. With shallow waters averaging depths of 55 to 75 metres, drilling here is more cost-effective and technically less complex than in deeper areas. Plus, existing infrastructure, including the Nong Yao A and B platforms (in operation since 2015), provided Valeura with the perfect opportunity to ramp up production without the costly investment of new construction. The combination of rich reserves and readily available facilities made Nong Yao C an ideal choice for boosting oil output efficiently.

With success already visible, Valeura is looking ahead to future opportunities for infill drilling—a technique where additional wells are drilled to further tap into remaining reserves. This ensures sustained production beyond the short-term, keeping Valeura’s energy output strong.

Could this be the start of a new era for Valeura in the Gulf of Thailand?