Valeura Energy extends key contracts for Jasmine oil field in Thailand

Valeura Energy, a Canadian upstream oil and gas company, has announced the extension of two crucial contracts related to the Jasmine oil field in Thailand.

This strategic move by Valeura Energy, which operates in the Gulf of Thailand and the Thrace Basin of Turkey, ensures the continuity and reliability of operations in the field.

Valeura Energy’s charter of the floating production storage and offloading vessel (FPSO) for the Jasmine oil field, along with the contract for operating and maintenance services, has been extended for a period of five years, now set to expire at the end of 2028. This extension highlights the mutual trust and confidence between Valeura Energy and its partners in the region.

To ensure the ongoing reliability and compliance of the FPSO, Valeura Energy is currently undertaking approximately $9 million worth of capital projects for its refurbishment. These initiatives are aimed at enhancing the vessel’s performance, extending its class certification, and aligning with the company’s commitment to maintaining the highest standards of operational excellence.

The refurbishment spending aligns with Valeura Energy’s previously announced capital expenditure guidance, as outlined on April 18, 2023.

The extension of the FPSO charter and the contract for operations and maintenance services underscores Valeura Energy’s dedication to optimizing production efficiency, ensuring long-term viability, and delivering value to its stakeholders.

By solidifying its presence in the Jasmine oil field, Valeura Energy reaffirms its commitment to sustainable growth and creating enduring partnerships in the global energy market.

Sean Guest — Valeura Energy President and CEO said: “I am pleased to announce these developments, which further illustrate the potential to continue deriving value from the Jasmine oil field.  As announced on May 17, 2023, the Jasmine field has produced 90 million bbls cumulative, greatly exceeding the expectations set at its original development sanction in 2004 of approximately seven million bbls.

“As we continue to see the potential for further production from the Jasmine oil field we have prioritized the maintenance of our infrastructure as a key aspect to ensuring the ongoing safe delivery of value.  These contract extensions pave the way for Valeura to pursue further field extensions and infill drilling in the years to come as we continually seek to extend the economic life of the asset.”

Surpassing the initial development sanction expectations of around seven million barrels set in 2004, the Jasmine oil field achieved a significant milestone on May 15, 2023, by producing its 90 millionth barrel of oil.