KrisEnergy has made a final investment decision (FID), opting to proceed with the first phase of development for the Apsara oil field, the first hydrocarbon development project offshore Cambodia.
Phase 1A of the Apsara development, in Cambodia Block A in the Gulf of Thailand, is planned to be a single unmanned minimum facility 24-slot wellhead platform producing to a moored production barge capable of processing up to 30,000 b/d of fluid with gas, oil and water separation facilities on the vessel. Oil will be sent via a 1.5km pipeline for storage to a permanently moored floating, storage and offloading vessel.
“FID is another step in progressing the Apsara development within the target timeframe following the formal signing of the petroleum agreement in late August," said Kelvin Tang, KrisEnergy’s CEO and president of Cambodian operations. "Our technical and operations teams are preparing the necessary tenders for materials, equipment and services. In parallel, consultations continue with parties interested to join this groundbreaking project to reduce our operational risk and capital expenditure exposure.”
KrisEnergy operates Cambodia Block A and holds 95% working interest. The General Department of State Property and Non Tax Revenue of the Ministry of Economy and Finance holds the remaining 5% on behalf of Cambodia's government.
The Cambodia Block A contract area covers 3083sq km over the Khmer Basin in the Gulf of Thailand where water depths range 50-80m. KrisEnergy says that the individual oil accumulations in Cambodia Block A are small in size and spread over a large geographic area, requiring significant funds and time to fully develop. Additionally, reservoir production performance in the Khmer Basin has yet to be proven.
"For these reasons, among others, there is some uncertainty regarding long-term production rates, reserves and commercial viability and therefore a phased development approach has been prudently adopted," the company said. Once the initial Phase 1A platform is on stream, there will be a period to monitor reservoir performance before commencing Phase 1B. The company says 1B would see up to three additional platforms producing to the Phase 1A facilities. A Phase 1C will potentially add up to six additional platforms for the full 10-platform Apsara development.
It's been a long road to FID. In 2014, KrisEnergy purchased Chevron's Cambodia business for US$65 million. The purchase included the Cambodia Block A.
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