SINGAPORE - The Government of Cambodia and oil and gas exploration firm KrisEnergy have signed 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, 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 decision.
Once the decision is made, the Apsara project is expected to take up to 24 months to produce first oil.
At this point, a 5 per cent interest in Cambodia Block A would be transferred to the Cambodia Government. KrisEnergy will hold the remaining 95 per cent.
The Cambodia Block A contract area covers 3,083 sq km over the Khmer Basin in the Gulf of Thailand where water depths range between 50 and 80m.
KrisEnergy called for a trading halt at 10.32am before the announcement was made. The shares were last traded up 4.3 per cent at 12.1 Singapore cents.
