Cambodia’s short oil dream ends as exploration firm collapses
Cambodia’s dream of becoming an oil-producing nation had a rude awakening as the company commissioned with the upstream field works collapsed a few days ago.
Singapore-based KrisEnergy has gone into liquidation after production at Cambodia’s first offshore oil field Apsara failed to meet expectations, leaving the exploration firm unable to cover its debt, according to a filing to the Singapore Exchange on June 4.
KrisEnergy had been depending on cash flow from the project to support a restructuring. But with output from the Cambodian field far below initial expectations, the company said it had no other viable restructuring options or sources of cash and so has submitted a winding-up petition.
Output target clearly missed
KrisEnergy operated the Apsara field in Cambodia with a 95-per cent stake starting in December last year and had set a peak production target of 7,500 barrels per day by mid-February. However, production peaked at around 3,500 barrels per day in March and averaged less than 2,500 barrels per day since.
In total, KrisEnergy holds interests in eight licenses in Bangladesh, Cambodia, Indonesia and Thailand, of which three are producing assets, the Cambodian field, an oil and gas field in Thailand and an onshore gas field in Bangladesh.
However, its liabilities exceed the value of those assets and it was unable to secure a near-term infusion of fresh funds, the company, said. Its biggest shareholder is Singaporean conglomerate Keppel Corporation, which has a total exposure to KrisEnergy of about $317 million.
Cambodia’s energy ministry is not amused
Meanwhile, the future of the Apsara project is unclear. The first cargo of up to 300,000 barrel was due to be exported in May, according to the Cambodian energy ministry which did not yet comment on KrisEnergy’s demise. It is also not publicly known if the shipment actually took place.
The lower-than-expected results from the Apsara oil field where met with dismay by Cambodia in April, and an energy ministry spokesman pointed at the possibility of taking legal action against KrisEnergy.
Cambodia’s dream of becoming an oil-producing nation had a rude awakening as the company commissioned with the upstream field works collapsed a few days ago. Singapore-based KrisEnergy has gone into liquidation after production at Cambodia's first offshore oil field Apsara failed to meet expectations, leaving the exploration firm unable to cover its debt, according to a filing to the Singapore Exchange on June 4. KrisEnergy had been depending on cash flow from the project to support a restructuring. But with output from the Cambodian field far below initial expectations, the company said it had no other viable restructuring options or...
Cambodia’s dream of becoming an oil-producing nation had a rude awakening as the company commissioned with the upstream field works collapsed a few days ago.
Singapore-based KrisEnergy has gone into liquidation after production at Cambodia’s first offshore oil field Apsara failed to meet expectations, leaving the exploration firm unable to cover its debt, according to a filing to the Singapore Exchange on June 4.
KrisEnergy had been depending on cash flow from the project to support a restructuring. But with output from the Cambodian field far below initial expectations, the company said it had no other viable restructuring options or sources of cash and so has submitted a winding-up petition.
Output target clearly missed
KrisEnergy operated the Apsara field in Cambodia with a 95-per cent stake starting in December last year and had set a peak production target of 7,500 barrels per day by mid-February. However, production peaked at around 3,500 barrels per day in March and averaged less than 2,500 barrels per day since.
In total, KrisEnergy holds interests in eight licenses in Bangladesh, Cambodia, Indonesia and Thailand, of which three are producing assets, the Cambodian field, an oil and gas field in Thailand and an onshore gas field in Bangladesh.
However, its liabilities exceed the value of those assets and it was unable to secure a near-term infusion of fresh funds, the company, said. Its biggest shareholder is Singaporean conglomerate Keppel Corporation, which has a total exposure to KrisEnergy of about $317 million.
Cambodia’s energy ministry is not amused
Meanwhile, the future of the Apsara project is unclear. The first cargo of up to 300,000 barrel was due to be exported in May, according to the Cambodian energy ministry which did not yet comment on KrisEnergy’s demise. It is also not publicly known if the shipment actually took place.
The lower-than-expected results from the Apsara oil field where met with dismay by Cambodia in April, and an energy ministry spokesman pointed at the possibility of taking legal action against KrisEnergy.
