KrisEnergy set to acquire Chevron Cambodia unit for $81m

Production is expected to peak at 10,00 barrels per day.

Mainboard-listed KrisEnergy Ltd. today revealed that its wholly-owned subsidiary, KrisEnergy (Asia) Ltd, has entered into an agreement with Chevron Global Energy Inc. to acquire the entire issued share capital of Chevron Overseas Petroleum (Cambodia) Limited.

Chevron Cambodia is the operator of Cambodia Block A, where extensive exploration work is ongoing for a contract area that covers 4,709 sq km over the Khmer Basin in the Gulf of Thailand where water depths range from 50 metres to 80 metres.

According to a statement by KrisEnergy, “The total consideration for the transaction is US$65 million (S$81m) subject to a working capital adjustment. Chevron Cambodia will be renamed to KrisEnergy (Apsara) Ltd once an acknowledgment is received for the transaction by the Royal Government of the Kingdom of Cambodia.”

Here’s moe from KrisEnergy:

Joint-venture partners, MOECO Cambodia Co. Ltd (“MOECO”) and GS Energy Corporation (“GS Energy”), have approved the transaction.

Chevron Cambodia’s 30% participating interest in Cambodia Block A will reduce to 28.5% once the Cambodia National Petroleum Authority (“CNPA”) or its successor completes its acquisition of a 5% participating interest in the block.

Pre-transaction, KrisEnergy held an indirect 25% participating interest in Cambodia Block A, which will reduce to 23.75% post transfer to CNPA. Upon completion of the acquisition of Chevron Cambodia, KrisEnergy will indirectly hold 52.25% participating interest in the development block.

Cambodia historically has no oil or gas production and the Apsara PPA is the first to be evaluated by the Ministry of Mines and Energy (successor petroleum regulator to CNPA). 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.