UAE firm Mubadala Petroleum has begun production at its Nong Yao oil field, located in the southern Gulf of Thailand.

Production is expected to reach a peak rate of approximately 10,000 bopd as more production wells are completed.

Oil from Nong Yao will be sold for local use to meet Thailand’s growing energy needs.

Nong Yao is Mubadala Petroleum’s third operated field in Thailand.

The field is located within the G11/48 concession, approximately 165km offshore in a water depth of about 75m.

In a statement, Mubadala said: “The project has been delivered with a strong emphasis on safety and, together with our partners KrisEnergy and Palang Sophon Limited, we will have invested approximately $320mn in the development.”

Musabbeh Al Kaabi, CEO, Mubadala Petroleum: “This is another great milestone for Mubadala Petroleum, as the start of production from Nong Yao has been brought on efficiently, on time and most importantly safely.

Nong Yao follows on the heels of the Manora field which started production in November 2014 and is currently producing at its peak rate of approximately 15,000 bopd.

“With three fields producing in Thailand, Jasmine, Manora and now Nong Yao, our gross production in Thailand will reach around 40,000 bopd during the second half of 2015.

“This is more than double the rate from a year ago and will make us Thailand’s second largest producer of black oil.”

Nong Yao is the second development in Thailand, after Manora, that Mubadala Petroleum has taken from discovery and appraisal through to development and now production. The field was originally discovered in 2009 and further appraised by five wells.

The development concept was selected in 2012 and the project was sanctioned in August 2013.