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Singapore’s KrisEnergy sells 30% Andaman II stake to BP for $15 mn

KrisEnergy BP
The Andaman II PSC is an exploration block over the North Sumatra Basin spanning 7,400 square kilometre

Singapore’s KrisEnergy has sold 30 percent stake in the Andaman II production sharing contract to BP Exploration Operating. KrisEnergy’s stakes were sold for $15 million, media reports said. However, it is subject to a $1.7 million retention sum.

This sum might be used by BP for any payments in the pipeline that may become due by KrisEnergy during the period between between April 8, 2020 and Dec 31, 2021.

In essence, a production sharing contract (PSC) is an agreement established between one or more investors and the government granting right over an oilfield for specific duration.

BP Exploration Operating is the subsidiary of oil giant BP. The Andaman II PSC is an exploration block over the North Sumatra Basin spanning 7,400 square kilometres, media reports said.

It is reported that KrisEnergy is yet to receive full financing for Apsara oilfield development which is located off Cambodia. It is expected to extract oil first from Cambodia this year.

The company told a local media, “Although the current oil price action is of concern, KrisEnergy continues to progress the Apsara oil development with the aim to produce first oil later this year.” It has hired Fugro to carry out a geotechnical survey to conduct a survey at the oilfield. Fugro is the world’s leading geo-data specialist.

Drop in petrol and diesel fuel in Cambodia is anticipated to continue this year on the back of the Cover-19 pandemic and other global tensions. Currently, there are only 4,000 petrol stations in Cambodia. Of those stations, only 700 have been approved by the Ministry of Mines and Energy.

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