Singapore-based KrisEnergy, which operates Cambodia’s offshore Block A, has awarded a $21.7 million contract to Keppel Shipyard Ltd for the Kingdom’s oil development, its press release issued on Friday said.
KrisEnergy announced that its wholly-owned subsidiary, SJ Production Barge Ltd, has contracted Keppel Shipyard Ltd for the modification and upgrading of its production barge for the Apsara oil development in Cambodia’s offshore Block A
KrisEnergy vice-president (operations) Brian Helyer said the partnership with Keppel Shipyard would be a major step for Cambodian oil production.
“We are glad to join hands with Keppel Shipyard on this milestone oil development project for Cambodia."
“With the support of experienced and capable partners, we believe we will effectively develop the flagship Block A asset for the benefit of the Kingdom of Cambodia as well as our stakeholders,” he said.
Keppel Shipyard’s scope of work on the production barge includes the installation of a power generation module, Electrical House, new accommodation units and other refurbishment works.
When completed in or around the third quarter of next year, the production barge will be capable of processing up to 30,000 bpd and be equipped with gas, oil and water separation facilities, KrisEnergy said.
While the value of the contract is some $21.7 million, a portion of it will be on deferred payment terms.
KrisEnergy first became a stakeholder for Block A in 2010, before buying the stake owned by Chevron for $65 million. KrisEnergy owns 95 per cent of the Apsara oil field in Block A, while the Cambodian government owns the rest.
Keppel Shipyard is a wholly-owned subsidiary of Keppel Offshore & Marine Ltd (Keppel O&M).
Keppel O&M managing director Chor How Jat said with a strong track record in refurbishment, modification and upgrading projects, Keppel Shipyard is well-positioned to engineer and execute a broad range of solutions for a variety of vessels.
“The new contract from KrisEnergy marks our first project together since Keppel O&M’s appointment earlier this year as its preferred partner for a comprehensive suite of offshore oil and gas solutions,” he said.
KrisEnergy is extracting oil in Cambodia Block A, which covers 3,083sq km over the Khmer Basin in the Gulf of Thailand where water depths range between 50 and 80 metres.
Phase 1A of the Apsara development consists of a single unmanned minimum facility 24-slot wellhead platform producing to a moored production barge.
Crude oil will be sent via a 1.5km pipeline for storage to a permanently moored floating, storage and offloading vessel.
Cheap Sour, the director-general of the General Department of Petroleum at the Ministry of Mines and Energy, told The Post on Sunday that the ministry had not received the information from the company.
However, he welcomes the news, saying the agreement between KrisEnergy and Keppel Shipyard is another good step forward for Cambodian oil extraction.
“I am optimistic that the country’s first oil extraction will [proceed according to] plan as set by the end of next year,” he said.
Sour said oil platforms had yet to be built in the sea. The company is seeking other partners to build a wellhead platform and will then find a drilling company.
The Ministry of Economy and Finance estimated that Block A can hold about 30 million barrels of oil, which could be extracted over the course of nine years.