Logo of Phnom Penh Post newspaper Phnom Penh Post - Block A oil partner inks finance deal

Block A oil partner inks finance deal

Block A oil partner inks finance deal

KRISENERGY Holding Company, a partner with Chevron in Cambodia’s offshore petroleum Block A, has secured US$115 million in bond and credit facility to fund its projects, a statement on Friday said.

The funding comes through a five-year, $85 million bond issue and three-year $30 million credit facility, would repay its existing $58.5 million facility, and “fund development of its asset portfolio, including near-term oil development projects offshore Cambodia and Thailand”, it said.

Singapore-based KrisEnergy holds a 25 percent stake in Cambodia’s Block A. Chevron Overseas Petroleum Cambodia Limited is the operator of Block A and holds a 30 percent interest, while a subsidiary of Mitsui Oil Exploration Company holds 30 percent, and GS Caltex the remaining 15 percent, according to the Cambodian National Petroleum Authority's website.

Block A is thought to be the most advanced area undergoing oil exploration in Cambodia, and government officials have said they hope extraction will begin by December 2012.

KrisEnergy Chief Financial Officer Stephen Clifford said the partners in Block A continue working toward realising development of the oil discoveries and reaching production. “The plan of development is currently with the Cambodian authorities awaiting appropriate approvals,” he said on Friday.

“In Cambodia, we believe there is excellent potential for hydrocarbon reserves and we would welcome bringing our technical and operational expertise to other projects and areas,” said Clifford, who directed further Block A operational inquires to Chevron.

Chevron’s Singapore-based spokesman Gareth Johnstone confirmed Friday that the firm aimed to make an investment decision on Block A this year.

KrisEnergy is involved in ten contract areas, all in Southeast Asia. Its latest financing arrangement comes through a five-year U$85 million bond, with Pareto Securities as Lead Manager. Standard Bank Plc and Sumitomo Mitsui Banking Corp were lead arrangers for the three-year $30 million revolving credit facility, it said

MOST VIEWED

  • Hun Sen’s China visit ‘a good opportunity’

    Prime Minister Hun Sen’s visit to Beijing on Sunday to discuss economic and trade issues presents a good opportunity for the Kingdom to strengthen Chinese ties and counter punitive measures by the West, an analyst says. The prime minister’s four-day official visit to

  • ‘Action needed to stop road deaths doubling by next year’

    Minister of Interior Sar Kheng has expressed concern over the rate of traffic accidents, saying the death toll will double by 2020 if no effective preventive measures were put in place. At least five people on average are killed on Cambodian roads every day. The interior

  • Ministry to lose $60M a year in revenue

    The Ministry of Commerce will lose $60 million in revenue annually after the government eliminated export procedures in a campaign to boost competitiveness, a senior official at the ministry has said. Speaking at a press conference on Friday regarding the EU’s decision to impose safeguard

  • Deputy PM Prak Sokhonn holds Australia bilateral cooperation talks

    Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Prak Sokhonn met with Australian Senate president Scott Ryan on Saturday to discuss bilateral cooperation between the two nations. Ministry of Foreign Affairs spokesperson Ket Sophann could not be reached for comment on Sunday,