Singapore-listed KrisEnergy is expanding its South-East Asia footprint with a $102.5 million deal to acquire a Gulf of Thailand licence from Mubadala Petroleum.
KrisEnergy will gain Mubadala’s 75% operating interest in the G10/48 licence through the acquisition of the latter’s Thai subsidiary that holds the stake.
The transaction, due to be wrapped up within five days, will give KrisEnergy total ownership of the permit where it already has a 25% interest.
The 4700 square-kilometre block, located in a water depth of 60 metres in the southern Pattani basin, hosts three oil discoveries – Wassana, Niramai and Mayura – in different stages of development or appraisal with total estimated contingent oil resources of 19.6 million barrels.
The partners have been evaluating development concepts for the Wassana find with a view to submitting an application for production later this year.
First oil is expected in the second half of 2015 with peak output targeted at 10,000 barrels per day.
“This transaction provides additional contingent resources for us to transform into 2P [proven and probable] reserves as the project progresses,” said KrisEnergy’s exploration & production director Chris Gibson-Robinson.
He added a concept decision is expected shortly, with an initial 12 to 14 wells to be drilled in the the first phase of the Wassana project.
“We have additional contingent resources from the Niramai and Mayura oil discoveries, which we will review, and there are further prospects and leads,” he added.