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KrisEnergy completes Chevron-Cambodia deal

By  Thursday, 02 October 2014 10:15
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Singapore’s KrisEnergy completed the acquisition of Chevron Overseas Petroleum (Cambodia) Ltd. to take operatorship in an offshore Cambodian block.

The US$65 million agreement, announced in August, gives KrisEnergy operatorship and an additional 30% interest in Cambodia Block A. KrisEnergy previously held 25% interest in the block to give the company a total of 55% interest.

Block A covers an approximate 6278sq km area over the Khmer Trough off Cambodia. The contract area is about 4709sq km over the Khmer basin, the third largest basin in the Gulf of Thailand. Water depths range from 50m to 80m.

The operatorship and interest will be held under the company’s subsidiary, KrisEnergy Aspara Ltd. Change of control was granted from the Royal Government of the Kingdom of Cambodia on 17 September.

The Cambodia National Petroleum Authority intends to exercise its right to acquire 5% working interest in the block, which will reduce KrisEnergy’s combined holdings to 52.25%.

“Development of what we believe are significant oil resources in place will be a flagship project for the company as well as for Cambodia,” says Richard Lorentz, KrisEnergy executive director and director of business development.

The Khmer basin has two sedimentary features: Pre-Cambrian and Quaternary. Since the mid-2000s, extensive exploration work in this particular license area resulted in the Apsara oil discovery; most of which were discovered in 2004. A production permit application was submitted in 2010 and updated in 2012.

Phase one of the Apsara project includes 24 development wells from a single platform with oil processed, then stored in an offshore storage vessel prior to commercial sales. Production from the initial single platform is expected to peak at approximately 10,000b/d.Two additional future development phases in the Apsara area may involve the installation of up to nine platforms, each with 24 wells.

Further development across the entire license area could involve up to 44 production platforms in seven separate producing areas.

Joint- venture partners include MOECO (30%) and GS Energy (15%), which have approved the acquisition.

Also in the Gulf of Thailand, KrisEnergy spud the Mancharee-1 well in August, using Seadrill Ltd.’s West Cressida jackup rig.

The Mancharee-1 well is located in block G10/48 in the Wassana oil field and covers 4696sq km over the southern section of the Pattani basin in water depths up to 60m. The license contains two additional discoveries, the Niramai and Mayura, which are in various stages of development.

Images from KrisEnergy

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KrisEnergy buys Chevron assets

KrisEnergy spuds Mancharee-1 well

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