PTTEP and Valeura reach FID on Bussabong gas project phase one
Wed, September 23, 2026 at 2:19 PM GMT+3 3 min read
Thailand's PTT Exploration and Production (PTTEP) and its partner Valeura Energy have agreed to proceed with phase one of gas development at the Bussabong gas field, located within Block G3/65 offshore Gulf of Thailand.
PTTEP is taking part in the project through its subsidiary, PTTEP Energy Development.
The decision, representing the project's final investment decision (FID), is Canada-based Valeura's first organic gas development in its Thailand portfolio.
The initial stage features the installation of two gas wellhead platforms, each with the capacity for 24 wells, linked by a 9km subsea pipeline to existing gas processing infrastructure at the neighbouring Bongkot field. PTTEP operates both the Bussabong and Bongkot fields.
First gas production from Bussabong is targeted for the end of 2028.
The estimated capital expenditure for Valeura's 40% working interest in phase one is around $35m (C$49.3m) for facilities, installation and pipelines, budgeted for expenditure in 2027 and 2028.
The company expects additional investment for drilling 25 development wells, projected to be in the range of $20–25m for its share. No significant spending is planned for 2026.
Valeura president and CEO Sean Guest said: "I am pleased to have rapidly turned our strategic farm-in with PTTEP into tangible development action.
"Within 14 months of entering into this arrangement, we are taking our first gas FID, which we believe sets us on a course to broaden and diversify our business in the Gulf of Thailand.
"Phase 1 is set to unfold quickly, with first gas planned for approximately the end of 2028. This quick action reflects PTTEP's customary streamlined approach and underscores the importance of establishing this strategic relationship."
Production from phase one is expected to deliver roughly 30 million cubic feet per day (mcf/d) of sales gas in 2029, increasing to 40mcf/d in 2030. Valeura's share of production corresponds to 12mcf/d and 16mcf/d, respectively.
The gas is described as relatively dry, with around 20 barrels of condensate per million cubic feet of gas.
The operator will work with Thai regulators and buyers to formalise the gas sales agreement.
Pricing is expected to follow the established framework for domestic gas contracts in Thailand, which include long-term, take-or-pay agreements linked to a basket of commodities and adjusted for inflation.
The Bussabong gas field, situated in the eastern part of Block G3/65, is divided into multiple fault-block compartments, allowing for a phased approach to field development.
The area was previously mapped by 3D seismic data, and both historic and recent exploration wells indicated gas presence, supporting the development decision.
PTTEP secured the rights to explore for and produce petroleum from the G3/65 Project in 2023 through a production sharing contract. The project spans around 11,647km2.
After meeting the conditions in the farm-in agreement, PTTEP retains a 60% stake, while Valeura Energy (Chaiyaphruek) holds the remaining 40% interest.
The official transfer of Valeura's working interest has received executive approval from the Thai Government's cabinet, with administrative completion expected by late September or early October 2026.
In June 2026, Valeura completed an eight-well drilling programmme at the Nong Yao field offshore Gulf of Thailand.
"PTTEP and Valeura reach FID on Bussabong gas project phase one" was originally created and published by Offshore Technology, a GlobalData owned brand.
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