Asia-focused explorer Salamander Energy has loaded the first oil onto its floating storage and offloading vessel (FSO) in the Thai Bualuang field.
Receiving first oil in the newly converted Suksan Salamander FSO marks the end of the planned upgrade to the field’s facilities by which the company was hoping to reduce its operating costs up to $25million annually.
The upgrade included loading new power and processing modules to the Bravo platform in the first half of the year. The Suksan Salamander FSO was delivered on location in July.
“We have upgraded production infrastructure in the Bualuang field on both time and budget,” said James Menzies, Salamander chief executive.
“The new facilities enhance the value of the field, minimise the risk of future downtime and mean we are well positioned for the next phase in the field’s growth.”
Last month Salamander agreed the sale of 40% working interest in two of its Gulf of Thailand concessions – B8/38 and G4/50 – to Sona Petroleum Berhard, for a consideration of $280million in cash plus working capital adjustments.
The blocks on sale include the Bualuang, producing at an average daily rate of between 11,000 and 14,000 barrels of oil.