Oil exploration firm KrisEnergy has signed fiscal and technical agreements with the Royal Government of Cambodia for the development of Block A Apsara oil field.
The deal is widely expected to pave the way for Cambodia’s first oil development, three years after the start of negotiations. If successful, it could signal a significant new source of demand for breakbulk transport in the region.
“These revised fiscal terms are on par with other Southeast Asian countries, and it is still premature to say whether or not this agreement could attract more upstream investment into Cambodia,” said Jean-Baptiste Berchoteau, research analyst at Wood Mackenzie.
Based in Singapore, KrisEnergy is expected to make a final investment decision in the next two months and aims to deliver first oil within two years.
In order to generate much-needed cash flow and reduce capital expenditure, it intends to farm out up to half of its stake in the block. “With the fiscal terms for the block now clarified, we expect interest in the project from both local and international players,” Berchoteau added.
Photo: Block A Apsara field. Credit: KE