Thai Energy Giant Bangchak Corporation Announces Significant Oil Discovery in Norway
SET-listed Bangchak Corporation Plc, a prominent Thai energy conglomerate, has announced a major crude oil discovery at the Talisker exploration well located in the Brage field, offshore Norway.
The group’s oil and gas drilling flagship, Okea ASA, a subsidiary in which Bangchak holds a substantial 45.58% stake, officially informed the Stock Exchange of Thailand (SET) yesterday of the positive results from the Talisker exploration well.
Okea is the production operator for the Brage field, holding a 35.2% interest.
The discoveries were made across two distinct geological structures, the Cook and Statfjord formations, and both are considered commercially viable.
Preliminary estimates suggest the gross recoverable resources for the two formations combined are in the range of 16–33 million barrels of oil equivalents (mmboe).
The Talisker exploration well itself, which reached a significant total depth of 10,223 meters, is estimated to hold gross recoverable resources ranging from 2–7 mmboe in the Cook formation and a larger 14–26 mmboe in the Statfjord formation.
The company is also optimistic about encountering further reserve potential in two thinner areas of sandstone within the deeper Brent Group, with the assessment of these reserves expected to be completed in the fourth quarter of the current year.
Strategic Growth and Value Creation in the E&P Segment
This latest discovery is a direct reflection of Okea’s successful strategy to drive organic growth by leveraging its in-house expertise, technology, and existing infrastructure.
Mr. Chaiwat Kovavisarach, Bangchak Group chief executive and president, stated that this oil discovery directly validates Okea’s strategy of pursuing organic growth— which focuses on expanding the business by effectively utilizing its in-house expertise, talent, and current assets to create value from within the existing portfolio.
He explained that Okea will continue to enhance production from petroleum fields strategically located near existing infrastructure, combining geological expertise with advanced drilling technology.
This integrated approach is designed to create significant additional value and effectively extend the production life of existing potential fields.
This achievement marks a continuation of the success seen earlier this year when oil and gas reserves were also discovered at the Mistral field, a venture in which Okea holds a 20% ownership.
Preliminary recoverable reserves for the Mistral field were estimated at 19–44 mmboe, further reinforcing the company’s growing presence in the North Sea region.
These consistent successes strongly reinforce OKEA’s commitment to developing petroleum resources in a cost-efficient manner, by continually increasing the production output from proven potential fields while maintaining a strong control over operational costs.
Expansion and Ambitions for Global Energy Security
The recent Norwegian success is concurrent with Bangchak’s broader strategy of re-entering and expanding its petroleum exploration and production (E&P) business across the Asia-Pacific region.
The oil discovery in Norway came shortly after the group made a strategic decision to re-enter the E&P business in Asia through a significant partnership with Chevron Offshore (Thailand) Limited (COTL) to explore for oil and gas in a potential area within the Gulf of Thailand.
Bangchak recently signed a cooperation agreement with the US-based firm to become a co-venturer at Block G2/65, which covers a vast area of 15,030 square kilometers in the Gulf.
Chevron had originally been awarded a license to explore and produce petroleum under a production-sharing contract signed with the Department of Mineral Fuels in May 2023.
This Asian expansion marks a major shift for Bangchak, which first entered the E&P segment in the Philippines a decade ago but decided to exit and subsequently relocated its focus to Norway in 2018.
The group announced ambitious plans last year to expand its E&P production capacity to 50,000 barrels per day by 2030 and is actively planning to acquire new E&P assets, particularly within the Asia-Pacific region, to enhance both its own portfolio and national energy security.
The ultimate goal of this strategic move is to sustainably add value to the group’s E&P business, with a long-term target of reaching an impressive 100,000 barrels per day by 2030.
