Logo of Phnom Penh Post newspaper Phnom Penh Post - First drop of oil by mid-2020, says Hun Sen

First drop of oil by mid-2020, says Hun Sen

Content image - Phnom Penh Post
Singapore-based KrisEnergy Ltd plans to extract its first drop of oil from Cambodia Block A, which it operates, by the middle of next year. KRISENERGY LTD

First drop of oil by mid-2020, says Hun Sen

Prime Minister Hun Sen on Monday confirmed that Cambodia will extract the first drop of oil from the Apsara oilfield in Cambodia’s offshore Block A by mid-2020.

He said this during a graduation ceremony for the Human Resource University, which was held at the National Institute of Education in Phnom Penh.

Last week, Singapore-based KrisEnergy Ltd – which operates Block A – announced that its wholly owned subsidiary KrisEnergy (Apsara) Co Ltd had signed a conditional letter of award with PT Profab Indonesia for the supply of a minimum facilities wellhead “mini-platform” for the Apsara oilfield – Cambodia’s maiden oil development.

“This development phase, Mini Phase 1A, comprises the mini-platform and five initial development wells connected to the Ingenium II production barge for oil, gas and water processing. Shuttle tankers will transport crude oil from the barge,” the firm said.

The Apsara oilfield in Cambodia’s offshore Block A lies over the Khmer Basin, an unproduced geological area in Cambodian waters in the Gulf of Thailand, it said.

“Apsara oil is scheduled to flow in the first half of 2020, and the field is expected to reach a peak rate of 7,500 barrels of oil per day.”

Hun Sen said: “Now our first drop of oil will be extracted by 2020, but on a specific date I will have to confirm. They [KrisEnergy] are working with the company [Profab], which is building equipment to extract our first oil.”

The Ministry of Mines and Energy’s General Department of Petroleum director-general Cheap Sour said: “We expect that if the price of the oil is in the $80 per barrel range, the government will receive approximately $900 million in revenue from the Block A development project over nine years.”

KrisEnergy investor relations and corporate communications vice-president Tanya Pang told The Post last week that Profab will fabricate and construct the jacket – the legs of the platform – and the topsides for the Apsara mini-platform.

“Once constructed, it will be sailed out to the Apsara oilfield location, where it will be installed and hooked up to the production barge, with the development wells drilled.

“This is the first phase of the development and is designed to produce the field and monitor the reservoir performance most efficiently and effectively before we progress to the further development of the Apsara area.

“As it states in the announcement, Apsara oil is scheduled to flow in the first half of 2020,” Pang said.

In July, KrisEnergy completed a 1,200sq km 3D seismic survey of Block A on time and without any health, safety or environmental incidents, it said. Shearwater Geoservices Singapore Pte Ltd had been awarded the turnkey broadband seismic contract through KrisEnergy (Apsara).

Shearwater Geoservices deployed its vessel, the SW Vespucci, to carry out the survey.

“The data will provide valuable information of the subsurface over two distinct areas – partially the Apsara development area and also a large portion of Block A where there has been very little data so far and has good potential for further hydrocarbon discoveries,” Pang told The Post.

KrisEnergy owns 95 per cent of the Apsara oil field in Block A, while the Cambodian government owns the remaining five per cent.

Cambodia Block A covers 3,083sq km in the Gulf of Thailand over the Khmer Basin and is approximately 150km off the Kingdom’s shores, with water depths ranging from 50-80m.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • Cambodia's poverty cut in half from 2009 to 2019: World Bank report

    A report published by the World Bank on November 28 states that Cambodia’s national poverty rate fell by almost half between 2009 and 2019, but the Covid-19 pandemic recently reversed some of the poverty reduction progress. Cambodia’s poverty rate dropped from 33.8 to 17.8 per cent over the 10