21st Mar 2023 16:46
(Alliance News) - Valeura Energy Inc on Tuesday said it will buy the remaining minority interest in its special purpose vehicle subsidiary company, Valeura Energy Asia Pte Ltd.
Valeura Energy Asia is the entity that holds all of its assets in Thailand.
The Calgary, Canada-based upstream oil & gas company said it will buy the remaining 12.5% stake in Valeura Energy Asia through a share exchange agreement. This will make SVP a wholly owned subsidiary of Valeura, and thereby increasing Valeura's effective interest in its entire Thailand portfolio.
As consideration, the company will issue to the minority shareholders an aggregate of 9.5 million common shares in Valeura. These shares represent about 9.4% of Valeura's enlarged share capital.
Chief Executive Sean Guest said: "The SPV was formed as a vehicle to efficiently conduct business development work in Asia over the 2021-2023 time frame and was a key construct in negotiating our two Gulf of Thailand acquisitions. Looking forward, our strong preference is to proceed with our subsidiary interests unencumbered, and to streamline our external reporting."
He added that the transaction is "materially value accretive" to the company's shareholders.
In a separate announcement, Valeura said the modifications to the MT Jaka Tarub crude oil storage vessel are now complete. This makes the vessel compatible with the Wassana field's infrastructure and capable of tandem crude oil loading/offloading, the company explained.
Subject to favourable metocean conditions, the vessel will arrive at the Wassana field in the "coming days". Once it has arrived, Valeura said it intends to resume oil production operations, targeting initial rates of up to 3,000 barrels per day.
By Sophie Rose, Alliance News reporter
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