Horizon Oil has brought its Nam Phong booster compressor online in Thailand, lifting gross field gas sales to approximately 10.3 TJ/d. The early result is expected to raise Thailand’s contribution to group production by about 500 boepd, although the company has not disclosed the project’s cost or stabilised production outlook.
- Gross Nam Phong gas sales rise 84% to approximately 10.3 TJ/d
- Compressor entered service on 4 September 2026
- Thailand contribution to group production expected to rise from approximately 2,000 to 2,500 boepd
- Horizon says the project was delivered on time and below budget
- Oil-linked gas pricing could support higher revenue and cash flow
Nam Phong Gas Sales Jump After Compressor Start-up
Horizon Oil Limited (ASX:HZN) has switched on a key piece of infrastructure at Thailand’s mature Nam Phong gas field, with initial gross field sales rising 84% to approximately 10.3 terajoules a day after the booster gas compressor entered service on 4 September.
The compressor is designed to reduce system backpressure, improve well deliverability and recover additional gas from the field. Horizon said the project was sanctioned in January 2026, several months after it acquired the Nam Phong asset, and uses a leased gas engine-driven compressor.
Horizon’s Effective Interest Adds Production Leverage
Horizon Chief Executive Richard Beament said the company’s effective 60% interest in Nam Phong means the higher operating rate should lift Thailand’s contribution to group production from approximately 2,000 boepd to about 2,500 boepd. That is a company estimate based on the early post-start-up result, rather than a disclosed full-period production forecast.
The field’s gas is sold under a long-term oil-linked contract. Horizon said the pricing structure means the increased volumes are expected to translate immediately into higher joint-venture revenue and cash flow, particularly given recent high oil prices. The announcement does not quantify the expected revenue uplift or disclose the compressor project’s capital cost.
Project Delivered Below Budget, Stabilisation Still Ahead
Beament said the compressor was delivered safely, on time and below budget, while crediting operator MH Energy Thailand and its operating manager, Matahio Energy. MH Energy Thailand holds 80% of Block E5, with PTTEP holding the remaining 20%; Horizon owns 75% of MH Energy Thailand, giving it the stated effective interest in the field.
The immediate production response is encouraging, but it remains an early operating datapoint. The next material test is whether sales can hold near the reported rate once the compressor and field settle into routine operation, and how much of that additional volume appears in Horizon’s realised cash flow.
Bottom Line?
The compressor has produced a sharp early lift, but sustained sales, realised oil-linked pricing and the undisclosed project economics will determine how much value reaches Horizon’s accounts.
Questions in the middle?
- Can Nam Phong sustain sales near 10.3 TJ/d after the initial commissioning period?
- What revenue, cash flow and payback contribution will the project generate at realised oil-linked gas prices?
- Will Horizon update group production guidance once the compressor’s operating performance is established?