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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

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