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

  • Siem Reap drain canal now ‘mangrove’ promenade

    A more than half a kilometre long stretch of canal in Siem Reap has been covered and turned into a promenade to attract visitors, said Ly Rasmey, secretary of state at the Ministry of Land Management, Urban Planning and Construction, on September 16. The new pedestrianised

  • Final verdicts for Khmer Rouge leaders ‘vital’ for next generation

    Nearly a decade after the commencement of Case 002/02 against Khieu Samphan back in 2014, the Extraordinary Chambers in the Courts of Cambodia (ECCC) is now set to deliver its final verdict for the former Khmer Rouge head of state. The Supreme Court Chamber of the ECCC,

  • Angkor wildlife, aquarium park still to open October

    The Angkor Wildlife and Aquarium complex about 30km southeast of Siem Reap town with initial total investment of more than $70 million is reportedly still on track for an end-October opening. The park is located on a 100ha plot along National Road 6 in Kbon village, Khchas

  • Defence minister reaffirms Kingdom’s staunch support for One-China policy

    Minister of National Defence General Tea Banh has reaffirmed Cambodia’s unwavering support for the One-China policy. Tea Banh was speaking at the September 20 ceremonial handover of 117 vehicles and other military equipment donated by China’s defence ministry, held at Phnom Chumreay International Military Training

  • Deaths due to ‘lifestyle’ diseases rise in Kingdom

    The Ministry of Health has called on people to pay closer attention to their health to protect themselves from non-communicable diseases (NCDs) which it said have caused high rates of deaths in the country. Ministry secretary of state York Sambath made the call at a

  • Textile industry minimum wage now $200

    The official minimum wage for workers in textile-related sectors including garment, footwear, and travel goods for 2023 was pegged at $198, with Prime Minister Hun Sen stepping in to add $2 to the total, making it $200 per month. The Ministry of Labour and Vocational Training made the announcement