PTTEP Energy Development Company, a subsidiary of PTT Exploration and Production Public Company (PTTEP), and Canada-headquartered Valeura Energy have taken a final investment decision (FID) to move forward with an initial gas development at an offshore natural gas field in Block G3/65, located in the Gulf of Thailand.
With the final investment decision for the Bussabong gas field in the G3/65 project now out of the way, the development is expected to take approximately two years; thus, first natural gas production is targeted for 2028 at a rate of around 30 million standard cubic feet per day (scfd), increasing to 40 million scfd by 2030 to help meet Thailand’s growing energy demand.
PTTEP plans to produce natural gas through a subsea pipeline system connected to the central processing platform (CPP) and production facilities of the nearby North Bongkot field in the G2/61 project. Leveraging this existing infrastructure is expected to enable the Bussabong gas field to be developed more efficiently and expeditiously.
The development plan will proceed following approval of the relevant agreements by the government authorities. Further exploration activities are planned to be conducted in other areas of the G3/65 project, including drilling an exploration well in the Nong Yao Northeast prospect to further assess the petroleum potential.
A discovery could provide an opportunity to increase the project’s production capacity in the future. PTTEP was awarded petroleum exploration and production rights for the G3/65 project under a production sharing contract (PSC) in 2023 and serves as the operator.
The project covers approximately 11,647 square kilometers. Following the satisfaction of conditions precedent under the farm-out agreement, PTTEP holds a 60% participating interest and remains the operator, while Valeura Energy holds a 40% participating interest.
This project will be Valeura’s first organic gas development in its Thailand portfolio. Phase 1 of the Bussabong development, which entails deployment of two wellhead facilities with 24 well slots each tied in to processing infrastructure with a 9-kilometer subsea pipeline, establishes a repeatable development template for the eventual full field development.
Dr. Sean Guest, Valeura’s President and CEO, commented: “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.”
Bussabong is a gas field in the eastern part of Block G3/65, with geological similarities to many other gas fields in the offshore Gulf of Thailand. The field’s reservoirs are divided into multiple fault-block compartments, which lend themselves to a phased, repeatable development model.
The Bussabong area was fully covered in pre-existing 3D seismic data and contained several historic gas discoveries before Valeura entered into the farm-in agreement with PTTEP. An additional exploration well in 2025 was also successful, which led the two companies to immediately engage in development planning once the partnership began.
Thailand’s upstream regulator has already approved a defined production area for the Bussabong field, for which full field development could ultimately entail further phased development to fully commercialise the field and identified prospects.
Valeura envisages further final investment decisions in the coming years, subject to favourable definition of resources through step-out exploration and appraisal drilling. Phase 1 capital spending associated with the facilities, installation, and pipelines, net to Valeura’s 40% working interest, is expected to be approximately $35 million, and will be spent in 2027 and 2028.
In addition, the firm anticipates drilling capex associated with the currently planned 25 development wells, in the range of $20-25 million (Valeura’s 40% working interest share).
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