# Wassana reimagined as Valeura unlocks 2043 oil vision

- Link: https://www.directorstalkinterviews.com/wassana-reimagined-as-valeura-unlocks-2043-oil-vision/4121197512
- Published: 2025-05-20T14:53:00+01:00
- Author: Amilia Stone

Valeura Energy has taken a decisive step in transforming its Gulf of Thailand portfolio
with a $120 million investment to redevelop the Wassana oil field. This ambitious
project promises to more than double current production, extend the field’s life
by 16 years, and significantly enhance shareholder value.

The redevelopment centres on replacing the ageing Mobile Offshore Production Unit(
MOPU) with a state-of-the-art Central Processing Platform (CPP). This new infrastructure
will not only increase production capacity but also enable the drilling of up to
24 wells, facilitating a more comprehensive extraction of the field’s resources.

First oil from the revamped Wassana field is anticipated in the second quarter of
2027, with peak production projected at 10,000 barrels per day—over 2.7 times the
current output. This surge in production is expected to be achieved through an initial
drilling campaign comprising 16 horizontal development wells and one water injection
well.

Financially, the project is poised to be highly accretive. The proved plus probable(
2P) reserves have been revised upward to 20.5 million barrels, marking an 18 million
barrel increase. The net present value (NPV10) before tax has risen to $218 million,
equating to a net asset value addition of C$1.23 per share. The internal rate of
return is estimated at 40% at $60 per barrel Brent oil prices, with a payback period
of just 18 months.

Strategically, the new CPP is designed to support a ‘hub and spoke’ model, allowing
for the potential tie-in of satellite oil accumulations discovered both north and
south of the main Wassana field. This approach, successfully employed in Valeura’s
Jasmine and Nong Yao fields, could further extend the field’s plateau production
and overall lifespan.

The engineering, procurement, construction, and commissioning (EPCC) contract for
the CPP has been awarded to Thai Nippon Steel Engineering & Construction, a firm
with four decades of experience in developing similar facilities in Thailand. Notably,
over 80% of the facility’s capital expenditure is under fixed-price commitments,
with key long-lead items already secured.

_**[Valeura Energy Inc](https://www.directorstalkinterviews.com/company/valeura-energy-inc/vle.to)**(
[TSX:VLE](https://www.directorstalkinterviews.com/company/valeura-energy-inc/vle.to))
is an upstream oil & gas company, with a clear strategy to add value for shareholders.
The Company has a strong balance sheet positioning it for potential inorganic growth
opportunities in the near/medium-term, and substantial longer-term upside potential
through an operated deep, tight gas play. _

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