Canadian independent Valeura Energy has agreed to buy Mubadala Energy’s operated offshore Thailand assets consisting of interests in the producing Nong Yao, Jasmine & Ban Yen, and Manora oilfields in the Gulf of Thailand.
Valeura said the assets collectively currently produce 21,200 barrels per day of oil net to the interest being acquired.
The purchase price is US$10.4 million plus up to an additional US$50 million, contingent upon certain upside price scenarios.
There is a decommissioning component included in the acquisition, and Valeura said costs have been estimated by the operator, using internal and/or external engineering estimates, to be a net US$214 million on an undiscounted basis.
Valeura said the acquisition interests are 90% of Nong Yao, 100% of Jasmine & Ban Yen and 70% of Manora, with proven plus probable oil reserves totalling 24.1 million barrels.
Operating expense on the assets is about US$22 per barrel, and the fields are mature or midlife with further development opportunities.
Valeura said another rationale for the deal was the synergies with its recently-acquired Thailand portfolio from KrisEnergy, which included the Wassana and Rossukon fields.
Valeura chief executive Sean Guest said: “This is a transformative transaction for Valeura, firmly establishing our company as the largest independent operator of oil production in Thailand.
“We set out to build a business that generates cash now, while providing reinvestment opportunities for the medium term, and we believe that the two acquisitions we have signed in 2022 accomplish these goals and more, creating significant value for our shareholders without dilution.”
“Our forward efforts will focus on developing the potential of these assets, by projects including further development of the Nong Yao field where we are forecasting peak production rates in 2024, reinvestment into the Jasmine and Ban Yen fields to continue their long history of reserves replacement, and on selective step-out opportunities where we see the potential to more fully utilise the fields’ extensive infrastructure to commercialise new accumulations,” Guest added.
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