Singapore-based oil and gas company KrisEnergy is set to sign a petroleum agreement with the government of Cambodia for offshore Block A later this month.
In its report for the second quarter and first half of the year on Monday, KrisEnergy said that the government of Cambodia has approved the signing schedule for the petroleum agreement for Cambodia Block A for August 23.
The block is located in the Khmer Basin in Cambodian waters in the Gulf of Thailand. It covers an area of 4,709 sq km, approximately 150 km offshore Cambodia where water depths range between 50 and 80 meters.
Exploration work in the license area since the mid-2000s resulted in the Apsara oil discovery for which a production permit application (PPA) was submitted in 2010 and updated in 2012.
Jeffrey S. MacDonald, Interim Chief Executive Officer, commented: “This is a major step forward in the development of the Apsara oil field and establishing Cambodia as an oil-producing nation.”
First phase development of the Apsara area is targeting a single platform with peak production of 8,000 bopd, with potential for additional nine platforms in the Apsara area.
KrisEnergy holds 95% interest in the block and the remaining 5% working interest is begin assumed by a relevant government corporation as decided by the Cambodian Ministry of Mines and Energy.
In the Monday report, KrisEnergy reduced its capital expenditure for the year from $121.5 million to $110.3 million, although this investment profile will depend on the declaration of final investment decision and award of development contracts with respect to Cambodia Block A, the company said.
The company posted a 19.4% increase in revenues for the second quarter of 2017 compared to the prior-year period. The revenues recorded in 2Q 2017 were $36.7 million versus $30.7 million in 2Q 2016.
The company’s production volumes dropped by 23.9% year-over-year.
Offshore Energy Today Staff