Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>ā¸ēCambodia>>Energy>>Oil firm ready to push ahead with offshore drilling
NEWS UPDATES Asean Affairs     August 16,  2016  






Oil firm ready to push ahead with offshore drilling


Singapore-listed oil and gas firm KrisEnergy Ltd is moving closer to finalising its deal with the Cambodian government that will pave the way for extraction from the Block A offshore oil field once negotiations over a technical strategy and fiscal regime have been finalised.

“Final versions of a suite of transaction documents for the Cambodia Block A oil development are ready for signature and will be followed by the enactment of supporting legislation,” the company announced yesterday in its half-year financial statement.

It said a “comprehensive review of the subsurface, facilities, schedule, cost, crude marketing and economics” had already been completed.

Tanya Pang, the company’s VP for investor relations and corporate communications, said KrisEnergy was looking to finalise the revised licence agreement “as soon as possible”. She added that the agreement would come before Cambodia officially adopts its long-awaited petroleum law.

“The timing of the signing of the documentation will depend on availability of the government personnel,” she said, adding that terms of the deal could not yet be disclosed to the public.

KrisEnergy farmed into Block A in 2010 and increased its stake in the 4,700-square metre offshore block to 55 per cent in August 2014 by purchasing the stake of departing Chevron. Its participating interest in Block A could fall slightly if the government exercises an option to acquire a 5 per cent interest in the block.

The company has previously stated that the site had the potential to pump out 10,000 barrels of oil per day.

Meng Saktheara, secretary of state at the Ministry of Mines and Energy (MME), said he expects the deal will be signed by next month.

“KrisEnergy has agreed on the tax law and the proposed amendments to the profit-sharing regime that is based on a cost recovery concept,” he said, adding that the other partners in the block – Japanese-backed MOECO Cambodia Co Ltd and South Korea’s GS Energy Corporation – still need to agree on the new framework.

The revised negotiations give the government fairer treatment on how it profits from the Kingdom’s natural resources through a new profit-sharing regime, he said, adding that he could not disclose specific details of the agreement until it has been signed.

“We have also provided KrisEnergy with more flexibility in the contract area of Block A,” he said, adding that once the company commences drilling, it can explore further around its licensed area.

While Saktheara said a dedicated timeline for extraction will be dependent on when both parties decide that the oil extraction will earn a profit, after the agreement is finalised, the company could begin a seven to eight month drilling campaign that would see production starting up after 24 months.

However, he said from the ministry’s point of view, production was not a high priority so long as future projections for global oil prices remain gloomy.

Nevertheless, he said the deal would bring greater confidence to Cambodia’s potential energy sector because it would show foreign investors that the Kingdom can negotiate fair and transparent deals.

“The deal will pave the way and stabilise the investment environment in Cambodia’s energy sector in terms of future investment,” he said, adding that the government has worked on providing better “clarity” for future negotiations.

Richard Stanger, president of the Cambodian Association of Mining and Exploration Companies (CAMEC), said that while the negotiations for a profit-sharing agreement have been dragged out, an internationally recognised agreement would be positive for the Kingdom’s undeveloped oil and gas sector.

“This would be a very important development for the government and KrisEnergy,” he said, noting that it could help future negotiations with investors even if exact details of the agreement remain confidential.

“It has taken surprisingly long for them to agree [on a plan], but I guess that means they are trying to do it correctly,” he said.



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



 
Today's  Stories                           August  16, 2016 Subsribe Now !
• Cap of 5% inflation in new economic plan Subcribe: Asean Affairs Global Magazine
• The economic impact of not exploring for resources
• Oil firm ready to push ahead with offshore drilling
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Philippines to buck Asian economic slowdown
• A challenging market to grow 
Asean Analysis                  August 5, 2016
• Asean Analysis August 5, 2016
A Quick but Concerning Start to the Duterte Presidency
Advertise Your Brand

Asean Stock Watch   August  15, 2016

• Asean Stock Watch-August 15, 2016
The Biweekly Update
• The Biweekly Update  August 5, 2016

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 








Indonesia  to launch 13th economic package this month

Coordinating Economic Minister Darmin Nasution said on Wednesday that the government would release its 13th economic policy package in August, adding that the draft had been completed.

Darmin said the 13th package was largely an extension of the previous one, but would expand its focus beyond industry. The 12th package focused on small and medium enterprises.

"We are just waiting to schedule a meeting with the president," Darmin told reporters at his office. He refused to give the exact date the new policy package would come into effect.

 The ministry team must meet with President Joko "Jokowi" Widodo one more time to finalize the details, Darmin said.
Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com