Canada-based Valeura Energy, an oil and gas company, is seeking further insight from Thailand regarding the Southeast Asian country’s recent request to oil producers to postpone planned downtime at oil production facilities and temporarily suspend crude oil exports.
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Given the ongoing conflict in the Middle East, oil supply routes are being reevaluated, with countries seeking alternatives and focusing on their domestic energy production, as illustrated by Thailand, which is putting internal oil supply at the forefront of its energy policy.
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After Thailand’s Ministry of Energy requested that domestic oil producers cooperate in supporting national energy security in the country, in light of disruptions to the normal supply of oil from the Middle East region, Valeura opted to look for further clarification from the Ministry of Energy to ensure compliance with the request and to continue supporting Thailand’s economy with domestically-produced energy.
The company anticipates that this new government action will not interfere with its ongoing operations in the country, as production is continuing as usual and in accordance with the firm’s high standards for health, safety, and environmental stewardship.
The Canadian player noted: “Thailand’s local network of crude oil purchasers constitutes a viable market for Valeura’s crude oil, and includes both refiners and blenders who have direct experience with the company’s particular crude oil streams.
“Typically, approximately one third of Valeura’s oil is sold into the domestic Thai market, and from time to time, each of Valeura’s oil streams have been sold within the domestic market.”
The Southeast Asian country is a net importer of oil, with approximately 92% of its daily crude oil requirements coming from foreign sources, predominantly the Middle East region.
Previously, Thailand issued similar requests in response to geopolitical developments to support national energy security by temporarily mandating that domestically-produced petroleum remains within the country.
Valeura claims to be well-versed in responding to such requests and intends to comply, to support Thailand’s energy needs. The firm set the wheels in motion a few months ago to get partial stakes from PTTEP in two offshore blocks.