Nong Yao

Location and Geology

The Nong Yao oil field is situated in the G11/48 concession in the southern Gulf of Thailand, approximately 165 km off the coast of Thailand. It is located in a water depth of about 75 meters (or 246 feet).

The field is owned by Valeura Energy Inc. with a 90% working interest and Palang Sophon with a 10% interest. Valeura Energy operates the field.

The Nong Yao field was discovered in 2009 by the Nong Yao-1 exploration well, drilled by an Emerald Driller jack-up rig. A successful appraisal drilling program comprising five wells was concluded in 2010, confirming the presence of oil.
Further drilling activities included the Rojana-A exploration commitment well drilled by the Atwood Orca jack-up rig in June 2014 to evaluate Miocene sandstone reservoirs.

The initial development phase involved 23 wells targeting the primary reservoirs, with a Wellhead Processing Platform (WPP) at Nong Yao A and a minimum facility Wellhead Platform (WHP) at Nong Yao B. These platforms are interconnected via a leased Floating Storage and Offloading (FSO) vessel. The construction of the production and processing facilities was completed in February 2015, and the FSO installation was finished by mid-2015.
Currently, the Nong Yao oil field features two interconnected fixed platforms housing a total of 37 wells and a processing facility. Processed oil is stored in the FSO vessel and then transferred to shuttle tankers for international sale.

Valeura Energy recently completed an infill drilling campaign at Nong Yao A, drilling two horizontal wells (37H and 38H) which have been brought online as producers. The 37H well is producing approximately 500 barrels per day (bbls/d), and the 38H well is producing around 1,000 bbls/d. These wells have encountered additional oil-bearing intervals that will be evaluated for future development.

An expansion project, Nong Yao C, is currently in the commissioning stage. This development involves a mobile offshore production unit (MOPU), TSEVEN Shirley, which was refurbished in 2023. A 3km pipeline connects the current Nong Yao field production infrastructure to the MOPU.
The drilling campaign at Nong Yao C includes up to nine gross wells (six producer wells and up to three water injectors) and is expected to take approximately four months. First oil from the Nong Yao C development is anticipated in the third quarter of 2024, with peak production rates from the expanded Nong Yao field targeted at 11,000 bbls/d, a 50% increase over the first quarter 2024 rates.

The Nong Yao conventional oil field has recovered 62.40% of its total recoverable reserves. Production is expected to continue until the field reaches its economic limit in 2027. The field currently accounts for approximately 1% of Thailand’s daily oil output.
As of August 2024, the greater Nong Yao complex is operating at full processing capacity, with stable average production of 13.4 mbbls/d (12.1 mbbls/d net to Valeura’s 90% working interest share, before royalties).

Key contractors involved in the project include Nippon Steel and Sumikin Engineering for the engineering, procurement, construction, installation, and commissioning (EPCIC) of production and processing facilities. Omni Offshore Terminals supplied the FSO vessel, and Equatoriale Services provided the single-point mooring (SPM) catenary anchor leg mooring (CALM) buoy.
For the Nong Yao C development, T7 Global is mentioned as the main EPC contractor.

With the Nong Yao C development, Valeura Energy aims to maintain production at approximately 25 mbbls/d for at least the next four months. Additional infill development wells are planned at the Jasmine and Manora fields to offset declines and support this production target.
The company remains focused on safe and sustainable growth, with a strong emphasis on health, safety, and environmental performance across all operations.