Horizon Oil has approved the final investment decision for its compressor project in Thailand, a strategic investment aimed to enhance gas recovery at the recently acquired Nam Phong field.
The project involves installing a refurbished gas engine-driven compressor powered by treated field gas as fuel.
Horizon said this configuration was selected for its cost-efficiency, shorter delivery time, and ability to unlock additional reserves.
Once operational in mid-2026, the booster compressor is expected to increase field output by at least 40 per cent, depending on reservoir performance.
Horizon CEO Richard Beament said: “This decision reflects our commitment to maximise value from our existing assets while supporting Thailand’s energy needs.
“We’re executing this low-cost project at pace, just months after acquiring the asset, a testament to our team’s focus and strength of our partnerships.
“The booster compressor will play a critical role in materially increasing production at Nam Phong, and we’re please to move forward with a solution that is both technically sound and economically compelling.”
The company has completed all necessary all environmentally and regulatory approvals for the project.
Production Solutions has been selected as the preferred vendor and procurement and site preparations are already underway.
The compressor project is expected to deliver strong returns with rapid payback and a significant increase in gas production rates and volumes.
Horizon’s share of development costs will be less than US$1.5 million, which will be funded using the company’s existing cash reserves and field production revenue.