KrisEnergy will develop Cambodia’s first oil field development after signing agreements with the South-East Asian nation.
Cayman-Islands-registered KrisEnergy said it would launch the Apsara project within the next two months now that fiscal and technical terms have been agreed.
First oil should follow two years later.
Cambodia will take a 5% stake in the block, which is in the Gulf of Thailand, leaving KrisEnergy with the remaining 95%.
Apsara will be served by a single unmanned platform and a moored production barge capable of processing up to 30,000 barrels of fluid per day.
Oil will be exported via a 1.5kilometre pipeline to a floating, storage and offloading vessel.
KrisEnergy said the oil deposits in Block A were small and spread over a large geographic area.
The company said it would require significant funds and time to fully develop Apsara.
Kelvin Tang, chief operating officer at KrisEnergy, said: “We are proud and honoured to be the operator of this landmark project, which will be an historic milestone for the economy and people of Cambodia as well as for KrisEnergy.
“Our technical and project teams have a successful track record of bringing greenfield oil developments in the Gulf of Thailand into production on time and to budget.
“Apsara marks only the first phase of the development of Cambodia Block A, there remains further potential in other geological trends within the contract area for future investigation.”
H.E. Meng Saktheara, secretary of state for Cambodia’s Energy and Mines Ministry, said: “The signing of the fiscal and technical agreements between the Government and KrisEnergy for oil production in Block A is the culmination of years of work and endeavour by all parties involved and we are very proud of the outcome.
“Producing Cambodia’s first oil in its offshore waters will be a major step along our steady road to economic development and national prosperity and is aligned to the Government’s key development goals.”
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