Canada-based Valeura Energy has entered into a farm-in agreement with Thailand’s PTT Exploration and Production Public Company Limited (PTTEP) to acquire a 40% interest in two offshore blocks, G1/65 and G3/65, in the Gulf of Thailand. This acquisition expands Valeura’s gross acreage in the region from 2,623 square kilometers to 22,757 square kilometers, strategically positioning the blocks near Valeura’s existing oil fields and PTTEP’s major gas fields.

The agreement, pending approval from the Thai government, allows Valeura to collaborate with PTTEP, which retains a 60% interest and operational control of both blocks. The blocks contain 15 oil and gas discoveries, supported by 27 wells, with exploration and appraisal activities ongoing. A 2025 work program includes four recently completed exploration wells and the acquisition of over 1,200 square kilometers of 3D seismic data. Valeura will cover 40% of back costs, approximately $14.7 million up to June 30, 2025, and fund an additional 165 square kilometers of seismic acquisition on Block G3/65, capped at $3.7 million.

“The spirit of collaboration between Valeura and PTTEP is strong, and we are excited to begin work on this vast swath of prospective acreage in the Gulf of Thailand with the potential for both near and long-term natural gas and oil developments,” said Dr. Sean Guest, President and CEO of Valeura. “Acquiring an interest in these blocks increases our acreage substantially and provides us with existing discoveries and attractive exploration prospects.”

Block G1/65, spanning 8,487 square kilometers, lies south of Valeura’s Jasmine and Ban Yen fields and west of PTTEP’s Erawan, Platong, and Benchamas gas fields. It features eight discoveries and focuses on two areas: Jarmjuree South, a liquids-rich gas and oil trend with recent appraisal drilling, and Maratee-Bussaba, an oil-prone area set for further seismic and drilling. Block G3/65, covering 11,647 square kilometers, is near Valeura’s Nong Yao field and PTTEP’s Bongkot gas field. Its key areas include Nong Yao North-East, an oil-bearing fairway, and Bussabong-Angun, a gas-rich zone with a recent discovery poised for potential fast-track development.

The production sharing contracts (PSCs) for both blocks include a 10% royalty, 50% cost recovery, and a 20% corporate income tax on net profits. The PSCs mandate eight wells and 800 square kilometers of 3D seismic by May 2029, with a possible three-year extension and a 20-year production period. This partnership enhances Valeura’s portfolio, leveraging existing infrastructure for efficient development in Thailand’s offshore energy sector.