Cambodia, KrisEnergy sign deal to develop offshore oil field, first oil expected in 2019

KrisEnergy

23/08/2017 10:06

PHNOM PENH, Aug 23 (Reuters) - Cambodia signed an agreement 
with Singapore-listed KrisEnergy Ltd  KRIS.SI  on Wednesday to 
develop an offshore oil field that could finally see Cambodia 
produce its own oil after years of delays. 
    Cambodia has struggled to develop oil fields in the Gulf of 
Thailand, as few companies are willing to invest in the area 
following the 2014 global oil price slump. 
    The agreement between Cambodia and KrisEnergy covers 3,083 
sq km (1,190 square miles) of the Khmer basin in the Gulf of 
Thailand known as Block A, the company said in a statement. Oil 
will be produced from the Apsara field within the block and 
output is expected within 24 months of the official launch of 
the project. 
    "Shortly after signing, we will declare a final investment 
decision and proceed to deliver first oil in 24 months - 
sometime in 2019," said KrisEnergy Chief Operating Officer 
Kelvin Tang at a signing ceremony in the Cambodian capital Phnom 
Penh. 
    Tang said that KrisEnergy is looking for partners to invest 
in the project and that Cambodia will receive around $500 
million in fees, taxes and royalties over the project's  
lifespan. 
    Cambodia's Finance Minister Aun Pornmoniroth said the area 
is estimated to yield over 30 million barrels over a nine-year 
period and that Cambodia was ready to learn from other 
countries' lessons and would not become oil-dependent. 
    "It will not allow itself to become a heavily oil dependent 
economy," Aun Pornmoniroth said. "It will instead use oil 
revenue to fuel structural transformation to sustain economic 
growth." 
    According to the agreement, KrisEnergy will own a 95 percent 
interest in the field while the Cambodian government will own 
the rest. 
    The first phase of development of the Apsara field will 
start with a single production platform and could potentially 
expand to 10 platforms depending on a final oil output 
determination, KrisEnergy said in their statement.  
    KrisEnergy bought out U.S. oil major Chevron Corp's 
operating interest in Block A in 2014 for $65 million. Chevron 
found oil in 2004 in the block but failed to reach a development 
agreement with the Cambodian government.  
 
 (Reporting by Prak Chan Thul; Editing by Amy Sawitta Lefevre 
and Christian Schmollinger) 
 ((prak.chanthul@thomsonreuters.com; +855 12 666 297; Reuters 
Messaging: prak.chanthul.thomsonreuters.com@reuters.net)) 
 
Keywords: CAMBODIA OIL/