Singaporean-listed oil and gas firm KrisEnergy is edging closer to finalising its deal with the Cambodian government that will pave the way for extraction from offshore oil field Block A.
According to KrisEnergy’s half-yearly financial statement, posted on its website yesterday, terms have been agreed and a request for a licence is underway.
“Technical and fiscal terms for the Apsara oil development in Cambodia Block A have been agreed and steps are underway to formalise the paperwork, aiming for first oil approximately 24 months after final investment decision is declared,” the announcement reads.
Contacted yesterday, Tanya Pang, KrisEnergy VP for Investor Relations and Corporate Communications, said the firm was not yet in a position to announce an expected date to commence development on the site.
“We can confirm that work on the formal paperwork for the production licence is under way,” she reiterated.
In August last year, KrisEnergy acquired Chevron’s 30 per cent stake in Block A, adding to its existing 25 per cent stake, giving it a controlling majority in the project.
At the time, KrisEnergy said the site had the potential to pump out 10,000 barrels of oil per day.
Richard Stanger, president of the Cambodia Association for Mining and Exploration Companies, said yesterday that KrisEnergy were well placed once the licence has been approved and a decision on investment agreed.
“They will get into it pretty quickly,” he said.
“They have already purchased a lot of the offshore equipment and some type of production platform.”
Stanger did not comment on the specific impact of falling oil prices effecting KrisEnergy’s prospects, but said sustained low oil prices “will affect everyone and is hard on possible revenues”.
With the conclusion of its long-drawn-out negotiation with KrisEnergy, the government plans to take up the passage of a new petroleum law, which will govern the extraction of oil from onshore and offshore fields, officials said in April.
However, the government has said that it could take time due to negotiations with lawmakers and NGOs over a range of issues, including revenue sharing.
The Ministry of Mines and Energy could not be reached for comment yesterday.