Valeura Energy's Strategic Farm-In and PTTEP's Bussabong Gas Field Development

Thailand's national upstream company PTTEP is preparing to make a final investment decision (FID) for the Bussabong gas field development project in the northern Gulf of Thailand, with first gas targeted for 2028. In its 2026 investment plan, PTTEP emphasized its focus on ensuring energy security for Thailand and accelerating projects under development. The Department of Mineral Fuels approved the designation of the Bussabong production area within Block G3/65 in the North Malay basin during the first quarter, and incoming partner Valeura Energy revealed that FID is expected this year. PTTEP's Management Discussion and Analysis for the first quarter of 2026 indicated that seismic data interpretation is ongoing, and Valeura previously described Bussabong as a "prime candidate" for fast-track development.

Planning is underway for new platforms to exploit the Bussabong gas field, which has the potential to serve as a hub due to multiple existing discoveries within a 10-kilometer radius. These discoveries and the asset's prospectivity suggest potential for several follow-up gas platforms, according to Valeura. The 11,647-square-kilometer Block G3/65 borders Valeura's Block G11/48, which hosts the producing Nong Yao oilfield, and is contiguous to the PTTEP-operated Bongkot gas project (G2/61), where first-quarter 2026 output averaged 709 million cubic feet per day of gas and 21,091 barrels per day of condensate.

Farm-In Agreement and Exploration Plans

Valeura Energy, headquartered in Singapore, agreed in July 2025 to farm into PTTEP's G1/65 and G3/65 blocks, both in the northern Gulf of Thailand. Valeura is acquiring a 40% interest in these offshore blocks, which are strategically positioned next to some of Thailand's largest producing gas assets and Valeura's own oilfields. To earn its interest, Valeura will pay 40% of actual back costs, amounting to US$14.7 million as of end-June 2025, while PTTEP will retain a 60% operated interest. The blocks were awarded in March 2023, and PTTEP's divestment will be completed upon fulfillment of conditions in the agreement and receipt of government approvals.

Meanwhile, the soon-to-be partners are planning exploration drilling in 2026 for the Karawake oil prospect area of Block G1/65, which lies in an oil-prone fairway on trend with producing fields. New 3D seismic data acquired in 2025 is currently being processed to help mature prospects on the offshore tract.