Cambodia, KrisEnergy seal terms for nation's first oil field development

8/23/2017

PHNOM PENH, Cambodia -- The Royal Government of Cambodia and KrisEnergy Ltd. have announced the signing of fiscal and technical agreements for the nation’s first oil field development in Cambodia Block A in the Gulf of Thailand. KrisEnergy, the operator of the Cambodia Block A since 2014, plans to develop the Apsara area in the north eastern section of the concession, which is one of seven geological trends in the licence, where there is potential for oil and/or gas to be trapped.

Under the terms of the agreements, KrisEnergy has 60 days to declare a final investment decision1 thereby signalling the formal launch of the Apsara project, which is expected to take up to 24 months to produce first oil. Under the formalized terms, a 5.0% participating interest in Cambodia Block A transfers to the Royal Government of Cambodia and will be held by the General Department of State Property and Non Tax Revenue of the Ministry of Economy and Finance. KrisEnergy holds the remaining 95.0% participating interest.

The agreements also trigger the second relinquishment phase of the concession, whereby 1,626 km2, or approximately 25.0% of the Cambodia Block A area, is returned to the authorities leaving 3,083 km2 under the operatorship of KrisEnergy.

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