Canadian oil and gas company Valeura Energy has received the go-ahead for its acquisition of partial stakes in two offshore blocks in the Gulf of Thailand from Thailand’s national oil and gas player, PTT Exploration and Production Public Company (PTTEP).
The Cabinet of the Government of Thailand has granted executive approval for the transfer of interest from PTTEP Energy Development Company, a subsidiary of PTT Exploration and Production Public Company (PTTEP), to Valeura, in relation to its strategic farm-in agreement for the G1/65 and G3/65 blocks off the coast of Thailand.
This farm-in deal enables the Canadian firm to earn a 40% undivided working interest in the blocks by paying PTTEP 40% of the back costs incurred, plus the cost of a 163-square-kilometer 3D seismic acquisition over the Nong Yao Northeast focus area. The total costs Valeura needs to pay were estimated at $25.6 million as of August 31, 2026.
This includes a deposit amount of $1.85 million already paid and entails $2.8 million in respect of the carried 3D seismic acquisition in addition to its share of back costs for 1,184 square kilometers of 3D seismic acquired over other focus areas on the blocks, four exploration wells drilled in 2025, geotechnical studies, license award fees, and development planning work.
Valeura and PTTEP are continuing to share information to support planning of the next phases of development and exploration across the blocks. Covering approximately 8,487 square kilometers, G1/65 lies directly south of Valeura’s B5/27 concession, home to the company’s operated Jasmine and Ban Yen fields. The block is also located west of PTTEP’s major Erawan, Platong, and Benchamas gas-producing assets.
Stretching roughly 240 kilometers, G1/65 encompasses the northwestern portion of the Pattani Basin and surrounds the Rossukon oil field. Exploration to date has established eight oil and gas discoveries, with 12 wells having encountered hydrocarbon pay, while additional undrilled prospects remain to be tested. Valeura and PTTEP have identified two priority areas that will form the basis of their initial exploration and development activities.
The Jarmjuree South area comprises a liquids-rich gas and oil-bearing structural trend located between the producing Benchamas and Platong fields. The opportunity has been significantly de-risked by four wells that encountered both oil and gas across multiple stacked reservoir intervals.
The second priority area, Maratee-Bussaba, which is situated immediately south of the Rossukon oil field, features a three-way structural closure along with combined structural and stratigraphic traps that have been identified as potential drilling targets using existing 3D seismic coverage.
On the other hand, G3/65 covers approximately 11,647 square kilometres and borders Valeura’s G11/48 block to the north, where the Nong Yao field is located. The block lies immediately west of PTTEP’s large Bongkot gas field.
Extending over around 200 kilometers, G3/65 covers the northwestern flank of the North Malay Basin. Seven oil and gas discoveries have been identified across the block, supported by 15 wells that have encountered hydrocarbon pay.
Two areas have been selected as priorities for the initial work program. Nong Yao North-East is considered to contain an oil-bearing fairway extending between Valeura’s producing Nong Yao field and the undeveloped Ubon oil field farther north.
The company plans to assess whether Nong Yao North-East or the Nong Yao-D discovery, made in 2024, represents the stronger candidate for the next tie-back development to the firm’s existing processing infrastructure at Nong Yao.
The second priority area, Bussabong-Angun, lies immediately west of the Bongkot gas field and is considered prospective for significant gas accumulations. While the presence of multiple existing gas discoveries supports this opportunity, a recent exploration well drilled by PTTEP to further evaluate the Bussabong prospect encountered gas pay.
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