KrisEnergy Nears Agreement For First Offshore Oil Extraction

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KrisEnergy employees attach a rock bit to a drilling shaft at an oil platform. KRISENERGY.COM

Terms have been settled between Singapore-listed energy firm KrisEnergy Ltd and the Cambodian government to pave the way towards a production-sharing agreement for the inaugural extraction of petroleum from the Kingdom’s territorial waters.

According to KrisEnergy’s chief operating officer and president of its Cambodia operations Kelvin Tang, a contract governing the extraction of offshore oil and gas from the Block A oil field in the Gulf of Thailand has been finalised. KrisEnergy has a 95 percent stake in the 4,709-square-kilometre offshore block, while the Cambodian government holds the remainder.

US energy corporation Chevron struck oil in Block A over a decade ago but offloaded its 30 percent stake to KrisEnergy in 2014 following a protracted dispute with the government regarding tax-related issues. KrisEnergy also obtained shares from Japan’s Mitsui Oil Exploration and South Korea’s GS Energy Corp last year.

Despite posting net losses of $237.1 million for the 2016 fiscal year due to non-cash charges and increased costs, KrisEnergy improved its net revenue by 137.3 percent to $142.8 million as a result of production from offshore oil fields in the Gulf of Thailand.

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