Logo of Phnom Penh Post newspaper Phnom Penh Post - KrisEnergy preparing to apply for licence

KrisEnergy preparing to apply for licence

KrisEnergy preparing to apply for licence

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.

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia resumes issuance of tourist visas

    The Ministry of Foreign Affairs and International Cooperation has announced the resumption of its tourist visa and visa exemption programme after a long hiatus due to the Covid-19 pandemic. In a letter dated October 20 and addressed to foreign embassies and consulates, foreign minister Prak Sokhonn

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the