KrisEnergy is set to sign a deal next week with the government of Cambodia for Cambodia Block A to develop the Aspara oil field.
Map of Block A, from KrisEnergy. |
The company expects the deal to be signed on 23 August.
“This is a major step forward in the development of the Apsara oil field and establishing Cambodia as an oil-producing nation,” says Jeffrey S. MacDonald, KrisEnergy interim CEO.
Cambodia Block A lies in the Khmer Basin in Cambodian waters in the Gulf of Thailand, where KrisEnergy says extensive exploration work in the license area since the mid-2000s resulted in the Apsara oil discovery.
The contract area covers 4709sq km over the Khmer Basin in the Gulf of Thailand where water depths range from 50-80m.
KrisEnergy is targeting a single platform with peak production at about 8000 b/d for Aspara’s first phase of development. The area has a potential for an additional nine platforms.
Technical and fiscal terms for the Apsara oil development in Cambodia Block A have been agreed and steps are underway to formalize the paperwork, aiming for first oil approximately 24 months after final investment decision is declared, says KrisEnergy.
KrisEnergy holds a 95% operated working interest in Cambodia Block A, with the Cambodian Ministry of Mines & Energy holding the remaining 5%.
“It has been reassuring to witness the increase in oil prices in the first half of 2017, however prevailing uncertainty and price volatility continue to pose challenges to investment decisions. We remain focused on our revised business plan and continued alignment on the Gulf of Thailand as our core area, and through the successful execution of our proposed asset farm-out and divestment transactions, we believe we will be on firmer ground to achieve our development goals going forward,” MacDonald said in the company’s Q2 2017 report.