Both the extension of the FPSO charter and the contract for provision of operations and maintenance services have been extended to the end of 2028
Valeura Energy announces extension of Jasmine oil field FPSO and operating contract. (Credit: D Thory from Pixabay)
Valeura Energy Inc. (TSX:VLE) (“Valeura” or the “Company”), the upstream oil and gas company with assets in the Gulf of Thailand and the Thrace Basin of Turkey, is pleased to announce an extension to two key contracts relating to the Jasmine oil field in Thailand. Valeura’s charter of the field’s floating production storage and offloading vessel (“FPSO”), and a contract for provision of operating and maintenance services for the vessel, have been extended by five years until the end of 2028.
Sean Guest, President and CEO Commented
“I am pleased to announce these developments, which further illustrate the potential to continue deriving value from the Jasmine oil field. As announced on May 17, 2023, the Jasmine field has produced 90 million bbls cumulative, greatly exceeding the expectations set at its original development sanction in 2004 of approximately seven million bbls.
As we continue to see the potential for further production from the Jasmine oil field we have prioritised the maintenance of our infrastructure as a key aspect to ensuring the ongoing safe delivery of value. These contract extensions pave the way for Valeura to pursue further field extensions and infill drilling in the years to come as we continually seek to extend the economic life of the asset.”
Both the extension of the FPSO charter and the contract for provision of operations and maintenance services have been extended to the end of 2028. In addition, the Company is currently conducting approximately US$9 million in capital projects to refurbish the FPSO, aimed at ensuring its ongoing reliability and extending the vessel’s class certification. The spending associated with the refurbishment is in line with the Company’s expectations and is included in its capex guidance outlook as announced on April 18, 2023.
Source: Company Press Release