KrisEnergy Ltd. announced today the acquisition of entire issued share capital of Chevron Overseas Petroleum (Cambodia) Limited, which holds a 30% participating interest in and operatorship of, Cambodia Block A. The total consideration for the transaction is US$65 million and upon closing, KrisEnergy will indirectly hold 52.25% participating interest in the development block.
Cambodia Block A lies offshore Cambodia where extensive exploration work in the license area since the mid-2000s resulted in the Apsara oil discovery. The contract area covers 4,709 sq km over the Khmer Basin in the Gulf of Thailand where water depths range from 50 to 80 meters.
Chevron Cambodia will be subsequently renamed to KrisEnergy (Apsara) Ltd upon completion of the acquisition.
KrisEnergy notes in a press release that Cambodia historically has no oil or gas production and the Apsara production permit application (PPA) is the first to be evaluated by the Ministry of Mines and Energy. KrisEnergy, along with the joint-venture partners, intends to work with the Cambodian authorities to agree the terms and conditions of the PPA before declaring final investment decision for the Apsara development.
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. This concept is similar to other fields in the Gulf of Thailand. Production from the initial single platform is expected to peak
at approximately 10,000 barrels of oil per day.
Richard Lorentz, Director Business Development at Kris Energy commented: “We farmed into Cambodia Block A in 2010 and we believe it has all the makings of a significant oil production area. Chevron, with its experience in the Gulf of Thailand, has done some tremendous work in Block A and we hope that with the KrisEnergy entity now holding operatorship, we will be able to steer the Apsara development plans forward to first production as quickly and cost effectively as possible. We will give this project our full focus as we work with the Cambodian authorities to finalise the Apsara PPA.”
Outside of the immediate Apsara development area, a further six structural trends have been identified and mapped as a result of 3D seismic interpretation or exploration drilling. Two additional future development phases in the Apsara area on the discoveries made to date 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.
The other participants in Cambodia Block A are MOECO with a 28.5% working interest, GS Energy with 14.25% and CNPA with 5% once formal transfer is approved.