Southeast Asia-focused oil company KrisEnergy has said it has secured a loan for the development of a gas field offshore Cambodia. The company on April 30, 2020, entered into a credit facility agreement with Kepinvest Singapore Pte. Ltd. as a lender for a loan of up to $87 million.
KrisEnergy will use the cash for the funding of the development of its near-term development project at Cambodia Block A.
The project is an offshore development oil and gas asset located in the Khmer Basin of the Gulf of Thailand with approximately 3,083 sq. km of gross acreage in which KrisEnergy has a 95% stake.
As previously reported, KrisEnergy is currently developing the minimum facilities wellhead platform (“Mini-Platform”) for the Apsara oil field in CBA.
Due to the unproven production performance of the Khmer Basin, the development of the Apsara oil field will be phased to decrease risk and provide time for the collection and analysis of critical data to be applied in future phases.
If further phases of CBA development are pursued, peak production is expected between 2024 and 2026. This development phase (“Mini Phase 1A”) is designed to incur minimum costs to first oil and comprises the Mini-Platform and five initial development wells connected to the Ingenium
II production barge for oil, gas and water processing.
At least two of the five wells will target fault blocks with previously successful exploration wells. Mini Phase 1A is scheduled to commence oil
production in 2020 and to reach a peak production rate of 7,500 barrels of oil per day.
KrisEnergy has estimated that approximately US$87 million will be required to fund the development of Mini Phase 1A at CBA until first oil is produced which is currently targeted for 2020.