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

  • Purging Sihanoukville’s past with a new masterplan

    Amid illicit activities, haphazard development and abandoned projects, the coastal city of Sihanouk province needs a reset to move forward. A new masterplan might be the answer to shake off its seemingly mucky image to become the Shenzhen of the south Gun toting, shootouts, police

  • Chinese may be first in tourism revival: PM

    Cambodia's tourism industry is gearing up to roll out the red carpet for Chinese travellers after Prime Minister Hun Sen on September 17 indicated that the Kingdom could soon throw open its doors to international holidaymakers vaccinated against Covid-19 – starting with guests from China. Cambodia Chinese

  • Four-pillar approach in reopening of tourism: PM

    Cambodia is drawing up a four-strategy approach to promptly restore domestic and international tourism activity and put the industry on a transition pathway to a sustainable and inclusive model that is resistant to future crises, according to Prime Minister Hun Sen. The prime minister made

  • Airline says ready for green light to reopen international tourism

    Sky Angkor Airline Co Ltd on September 21 said it is ready to transport South Korean and Chinese tourists to the Kingdom once the Cambodian government makes good on plans to reopen its borders to vaccinated travellers. The Siem Reap-based airline made the remark during a

  • Tourism concerns laid bare

    To ensure the success of plans to reopen the tourism market for international visitors, Cambodia must pay utmost attention to two primary determinants – the ongoing paradigm shift in domestic tourism services towards the ‘new normal’, and the factors influencing choices of destinations among foreign holidaymakers.

  • Cambodian bride ‘badly treated, held captive’ by Chinese man seeks help

    A Cambodian woman who travelled to China to marry a Chinese man there was “badly treated” by her husband’s family and then had to be rescued and will be returned to Cambodia to ensure her safety. The rescue operation came about after the 25-year-old