SET-listed energy conglomerate Bangchak Corporation continues to expand its petroleum business in Norway by developing a new production facility at the offshore Brasse petroleum field in the North Sea.
The new investment, made through its subsidiary Okea ASA, follows Bangchak's announcement in 2022 that it wants to increase investment in oil and gas exploration and production to strengthen its upstream petroleum business.
Okea ASA is a Norway-based oil and gas drilling company.
Brasse field is estimated to have 24 million barrels of oil equivalent in recoverable reserves, said Chaiwat Kovavisarach, chief executive of Bangchak and chairman of Okea ASA.
The Norwegian firm holds a 39.2% share in the Brasse project, which is located south of Brage petroleum field, where Okea is the operator.
Brasse will have a subsea tieback connected with petroleum production at Brage, he said.
Mr Chaiwat said he expects Brasse to start operation during the first half of 2027, with estimated net production from this field at roughly 10,000 barrels of crude oil equivalent per day in the first year of production.
"The operation is ahead of schedule and requires a lower investment budget than expected," he said.
"The Brasse field has so far made significant progress in exploration and development."
Okea expects to submit a plan for development and operation to the Norwegian government this month, renaming the petroleum field from Brasse to Bestla, said Mr Chaiwat.
Bangchak acquired a 45.7% share in Okea, which is listed on the Oslo Stock Exchange, in 2018.
Okea took over the Draugen oil field from Shell in 2018 and is continually developing new fields.
The company operates gas production at Hasselmus petroleum, with a subsea tieback connected with Draugen.
Hasselmus is expected to add 4,400 barrels of oil equivalent per day in production at plateau.
Bangchak is not only developing its upstream petroleum business, but also focusing on oil refinery and retail, acquiring Esso (Thailand) Plc last year.
Mr Chaiwat said earlier he acknowledges the automotive industry's shift to battery-powered cars, but he believes demand for oil will remain high for decades.