Can Horizon Oil’s Booster Compressor Deliver on Promised Production Gains?

Strategic Boost for Nam Phong Field

Horizon Oil Limited has taken a decisive step to enhance its recently acquired Nam Phong gas field in Thailand by approving the Final Investment Decision (FID) for the Nam Phong Booster Compressor Project. This move signals Horizon’s commitment to unlocking additional value from its assets through targeted, cost-effective upgrades.

The project involves installing a refurbished gas engine-driven compressor that will use treated field gas as fuel. This choice reflects a pragmatic balance between cost-efficiency, shorter delivery timelines, and operational effectiveness. The booster compressor is expected to come online by mid-2026 and is forecast to increase gas output by at least 40%, although actual uplift will depend on reservoir performance.

Financial and Operational Details

Horizon’s share of the development costs is estimated to be less than US$1.5 million, a relatively modest capital outlay that will be funded from the company’s existing cash reserves and ongoing production revenue. This low-cost investment is designed to deliver rapid payback and a material increase in production volumes, enhancing the field’s economic profile.

All necessary environmental and regulatory approvals have been secured ahead of the FID, underscoring the project’s readiness to proceed without foreseeable compliance hurdles. Production Solutions has been appointed as the preferred vendor, and procurement and site preparation activities are already underway.

Partnerships and Leadership

Horizon operates the Nam Phong field through MH Energy Thailand, which it owns 75% of, with the remaining 25% held by Matahio Energy, the operator managing day-to-day operations. PTTEP holds a 20% interest in the Block E5 joint venture. Horizon’s CEO, Richard Beament, highlighted the project as a testament to the company’s focus and strong partnerships, particularly praising the technical leadership of Matahio and the support from PTTEP.

Beament emphasised the project’s dual benefits – materially increasing production while supporting Thailand’s energy needs. The booster compressor is positioned as a technically sound and economically compelling solution that aligns with Horizon’s strategy of maximising value from existing assets.

Looking Ahead

As the project moves toward execution and commissioning, Horizon plans to provide further updates. The successful deployment of the booster compressor could mark a significant operational milestone, potentially setting the stage for further development initiatives in the region.