Cambodia’s oil wealth dreams hitting a wall

Oil platform in the Apsara oil field offshore Cambodia

Cambodia’s hopes for prosperity from the exploitation of an offshore oil field have been dealt a blow after a disappointing start of the country’s first-ever oil project.

The operator, Singapore-based oil exploration company KrisEnergy, in its latest analysis indicated that the reservoirs encountered in the five development wells of the Apsara oil field in the Khmer Basin of the Gulf of Thailand were less productive and continuous in nature than expected, compared with the results from the original appraisal wells.

KrisEnergy said that it was unlikely to reach the previously anticipated output of between 7,000 and 7,500 barrels a day, but rather half of that amount which would make the project hardly profitable.

“To date, the highest production rate achieved at the Apsara field was 3,534 barrels per day on March 27, 2021,” the company said in a March 31 update.

“In light of the above, the company is undertaking an assessment of the impact in respect of the group’s activities,” KrisEnergy, which started operations at the oil field in December 2020, said, adding that the cash flow necessary to fund ongoing operations of the group has not yet materialised.

Termination looms as KrisEnergy faces funding problems

Cambodia’s Ministry of Mines and Energy was not amused and demanded an explanation from KrisEnergy as to why the output was so low, noting that the company could face a fine or, potentially, the termination of the project.

The troubles in Cambodia are compounding problems for KrisEnergy.  The company revealed that the slow start of the Cambodian project threatened ongoing efforts to restructure its heavy debt load and could ultimately imperil the firm’s future.

“Given the significantly lower estimated ultimate recovery and cashflow from the Apsara development, material uncertainty exists over the group’s ability to complete its restructuring and to continue as a going concern,” the company told shareholders.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

Oil platform in the Apsara oil field offshore Cambodia Cambodia’s hopes for prosperity from the exploitation of an offshore oil field have been dealt a blow after a disappointing start of the country’s first-ever oil project. The operator, Singapore-based oil exploration company KrisEnergy, in its latest analysis indicated that the reservoirs encountered in the five development wells of the Apsara oil field in the Khmer Basin of the Gulf of Thailand were less productive and continuous in nature than expected, compared with the results from the original appraisal wells. KrisEnergy said that it was unlikely to reach the previously anticipated...

Oil platform in the Apsara oil field offshore Cambodia

Cambodia’s hopes for prosperity from the exploitation of an offshore oil field have been dealt a blow after a disappointing start of the country’s first-ever oil project.

The operator, Singapore-based oil exploration company KrisEnergy, in its latest analysis indicated that the reservoirs encountered in the five development wells of the Apsara oil field in the Khmer Basin of the Gulf of Thailand were less productive and continuous in nature than expected, compared with the results from the original appraisal wells.

KrisEnergy said that it was unlikely to reach the previously anticipated output of between 7,000 and 7,500 barrels a day, but rather half of that amount which would make the project hardly profitable.

“To date, the highest production rate achieved at the Apsara field was 3,534 barrels per day on March 27, 2021,” the company said in a March 31 update.

“In light of the above, the company is undertaking an assessment of the impact in respect of the group’s activities,” KrisEnergy, which started operations at the oil field in December 2020, said, adding that the cash flow necessary to fund ongoing operations of the group has not yet materialised.

Termination looms as KrisEnergy faces funding problems

Cambodia’s Ministry of Mines and Energy was not amused and demanded an explanation from KrisEnergy as to why the output was so low, noting that the company could face a fine or, potentially, the termination of the project.

The troubles in Cambodia are compounding problems for KrisEnergy.  The company revealed that the slow start of the Cambodian project threatened ongoing efforts to restructure its heavy debt load and could ultimately imperil the firm’s future.

“Given the significantly lower estimated ultimate recovery and cashflow from the Apsara development, material uncertainty exists over the group’s ability to complete its restructuring and to continue as a going concern,” the company told shareholders.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

NO COMMENTS

Leave a Reply