Valeura Energy Inc. and PTTEP Energy Development Company Limited have taken a Final Investment Decision to proceed with Phase 1 of an initial gas development at the Bussabong field in Block G3/65, offshore the Gulf of Thailand. Valeura holds a 40% non-operated working interest through its farm-in arrangement with PTTEP.
Announced on September 22, 2026, the project would be Valeura’s first organic gas development in its Thailand portfolio. The company describes Phase 1 as an initial stage that could provide a repeatable model for later development of the field, subject to resource definition, appraisal and exploration results.
#Planned facilities and connection to Bongkot
Phase 1 is planned to use two gas wellhead platforms, each with 24 well slots. The facilities are expected to be installed toward the northern part of the Bussabong field, in water depths of between 75 and 90 metres.
The platforms are planned to connect to gas processing infrastructure at the Bongkot gas field in neighbouring Block G2/61 through a short 12" seabed pipeline extending nine km. Bongkot is operated by PTTEP, and no new processing capacity is required to accommodate the Bussabong production.
Valeura says the platform design is consistent with other facilities used in the Gulf of Thailand. The company also expects construction and subsequent maintenance to benefit from PTTEP’s supply chain and its role as a major gas operator in Thailand.
#Capital spending and development schedule
Valeura expects facilities, installation and pipeline spending for Phase 1, net to its 40% working interest, to be approximately US$35 million. The company says this spending will take place in 2027 and 2028.
Separate drilling expenditure for the currently planned 25 development wells is anticipated in the range of US$20-25 million, representing Valeura’s 40% working interest share. No material spending connected with the development is planned for 2026.
Valeura anticipates first gas production at approximately the end of 2028. That timing remains subject to the risks identified by the company, including construction and platform deployment, drilling activity, regulatory and government approvals, equipment and service availability, financing, and potential development delays.
#Expected production and gas sales arrangements
The operator has indicated to Valeura that the facilities and wells planned for Phase 1 are intended to deliver approximately 30 mmcf/d of sales gas production in 2029, including 12 mmcf/d attributable to Valeura, followed by approximately 40 mmcf/d in 2030, including 16 mmcf/d attributable to Valeura. These are forward-looking figures based on the operator’s indication and remain subject to the assumptions and uncertainties described by the company.
Based on samples from exploration drilling, the gas is expected to be relatively dry, at approximately 20 bbls of condensate per mmcf gas.
The operator will work with regulators and the gas customer to formalise a gas sales agreement. The gas sales price is expected to reflect established pricing arrangements in the Gulf of Thailand, while the details will be subject to confidentiality obligations owed to the government, regulators and gas customer.
Valeura expects the customary pricing framework to yield terms that support robust project economics, subject to successful negotiation of a gas sales agreement on anticipated terms. The company’s work programmes and budgets are partly based on expected agreement among joint venture partners, as well as exploration, development and marketing plans and anticipated costs and sales prices. Those assumptions may change because of drilling results, the availability of drilling and offshore facilities, access to specialised equipment and service providers, changes in partner plans, unexpected delays and market conditions.
#Field background and potential later phases
Bussabong is located in the eastern part of Block G3/65. Its reservoirs are divided into multiple fault-block compartments, a geological setting that Valeura says supports a phased development approach.
The area was covered by existing 3D seismic data and included historic gas discoveries before Valeura entered its farm-in agreement with PTTEP. An exploration well drilled in 2025 was successful, after which the partners began development planning.
Thailand’s upstream regulator has approved a defined production area for Bussabong. Valeura says further phases could be considered to commercialise the wider field and identified prospects, but future investment decisions will depend on favourable resource definition through step-out exploration and appraisal drilling.
#Farm-in transfer and reserves evaluation
Under the farm-in arrangement, Valeura earns a 40% non-operated working interest in each of Blocks G1/65 and G3/65. Thailand’s cabinet has granted executive approval for the transfer of that interest from PTTEP to Valeura.
Valeura anticipates that the transfer will occur as an administrative step later in September or early October 2026. The company said it does not intend to issue a further announcement about the transfer.
Valeura’s reserves are scheduled to be evaluated as of 31 December 2026. The company expects its external reserves evaluator to add the relevant volumes to its reserves provided a gas sales agreement has been executed.
#Risks and conditions
The development remains exposed to risks involving capital costs, construction schedules, drilling performance, supply chains, specialised equipment, financing, government and regulatory approvals, gas sales agreement negotiations, weather, natural disasters, geopolitical conditions, commodity prices, interest rates, currency movements and changes in joint venture participation.
The company also cautions that exploration, appraisal and development of oil and natural gas reserves and resources are speculative activities involving a degree of risk. Further terms, assumptions, restrictions and contingencies apply to the transaction and development plans.
#Key Takeaways
- Valeura Energy and PTTEP Energy Development have taken a Final Investment Decision for Phase 1 of the Bussabong gas development offshore Thailand.
- Phase 1 is planned to include two wellhead platforms with 24 well slots each and a nine km connection to Bongkot processing infrastructure.
- Facilities, installation and pipeline spending is expected to be approximately US$35 million net to Valeura’s 40% working interest, with drilling capex for 25 development wells in the range of US$20-25 million.
- Valeura anticipates first gas production at approximately the end of 2028, subject to the stated development, regulatory and commercial conditions.
- A gas sales agreement has yet to be formalised, and future reserves additions depend on that agreement being executed.
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