Supply Chain Sustainability
Valeura recognises that contracting and procurement practices are critical to delivering long-term value. Accordingly, Supply Chain Sustainability has been identified as a key material topic requiring ongoing oversight and management focus.
Risk Management and Long-Term Value – Procurement decisions influence operational resilience, cost efficiency, regulatory compliance, and corporate reputation. Effective supply chain sustainability management helps identify and mitigate environmental, social and governance risks that may affect long-term value creation.
Impact Across the Value Chain – Supply chain activities affect workers, contractors, communities, and business partners. Responsible sourcing supports safe working conditions, ethical conduct and environmental protection – reinforcing stakeholder trust.
Management Approach
Valeura manages its supply chain through a structured framework that includes supplier and contractor assessments during a formal pre-qualification process, followed by ongoing oversight through performance evaluations and Supplier Quality Management (SQM) meetings.
This framework is governed by the Contractor Code of Conduct and administered by the Contract and Procurement Team, including contract, procurement, customs and expediting, as well as warehouse and base operations functions. Key procurement decisions are reviewed and approved by a Procurement Board Committee comprising selected senior management members.
Valeura also introduced a Contractor HSSE Management Standard, aligned with international good practice, to strengthen health, safety, environmental, and sustainability oversight across the contractor lifecycle. The standard adopts a risk-based lifecycle approach, covering planning, capability assessment, mobilisation, execution, demobilisation, and post-contract evaluation.
Supply Chain-Related Policies
Valeura requires all contractors and suppliers to comply with its Contractor Code of Conduct, which sets expectations for high operating standards and mandates adherence to the Company’s Code of Business Conduct and Health, Safety and Sustainability Policy.
Contractors must also comply with applicable environmental and regulatory requirements and relevant laws, including human rights legislation such as Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act (Modern Slavery Act).
Supply Chain Process
Step 1: Pre-Qualification
- Initial evaluation of prospective contractors and suppliers in compliance with international standards across 4 key aspects:
- Sustainability and Governance
- Health, Safety, Security & Environment (HSSE)
- Information Security
- Organisational and financial capability
- The above standards screen for the following sustainability-related criteria:
- Environmental management, pollution prevention, resource efficiency
- Prohibition against modern slavery, fair employment practice and treatment
- Business ethics, anti-corruption, and conflict of interest
- Only those who pass the Pre-Qualification requirements will be considered qualified contractors and suppliers
Step 2: Supplier Evaluation
- More in-depth evaluation of contractors and suppliers based on:
- Commercial criteria (e.g. Total Cost of Ownership)
- Technical criteria (e.g. technical capabilities, sustainability and HSSE, etc.)
- Contractors and suppliers may be subject to further ESG screening if there are significant gaps in the Pre-Qualification Process
- Identification of high-risk contractors and suppliers for work involving high sustainability and HSSE risks that significantly affect business operations
- Site visits for further evaluation if required (e.g., site visit to inspect supplier’s waste management process)
- Selected contractors and suppliers to acknowledge the Contractor Code of Conduct
Step 3: Supplier Quality Management
- Regularly review the performances of existing contractors and suppliers via the SQM process to maintain compliance and high standards
- Use the results of SQM to inform improvement actions, especially for high-consequence contractors and suppliers
Local Sourcing
Valeura prioritises sourcing from local contractors and suppliers whenever appropriate as part of its goal to support the local communities where it operates and strengthen local economies.
Evaluation of Performance
Expanding Operations
In 2025, Valeura’s total number of contractors and suppliers increased to 410, compared with 401 in 2024, reflecting expanded work activities, including the underwater inspection at the Wassana field.
Of the 410 contractors and suppliers in 2025, 306 (75%) were Thailand-based, accounting for approximately 42% of total procurement spending. In 2024, 314 of 401 suppliers (78%) were local, representing 41% of procurement spending. Despite changes in work scope, Valeura continues to prioritise local contractors and suppliers, supported by Thailand’s well-established upstream oil and gas supply chain.
Screening and Assessment
In both 2025 and 2024, 100% of new contractors were screened through the Company’s pre-qualification process. As part of this process, all suppliers were assessed for potential environmental impacts within the supply chain.
Following these assessments, 11 contractors were identified as High-Risk Contractors (HRCs) based on environmental and social criteria. In 2025, the introduction of the Contractor HSSE Management Standard refined the risk classification methodology, resulting in a reduction from 61 HRCs reported in 2024. Applying the updated methodology retrospectively would reduce the 2024 figure to 37.
For all HRCs, Valeura works with contractors to implement corrective actions to mitigate potential supply chain risks. No contracts were terminated in 2025, compared with one termination in 2024.
Valeura also identified no cases of contractor non-compliance with Canada’s Modern Slavery Act in 2025, consistent with zero cases reported in 2024.
Number of contractors and suppliers in 2025
