KrisEnergy has been thrown a lifeline by the Cambodian government, which has threatened serious consequences — including loss of the Block A production sharing contract — if the operator does not bring on stream its Apsara oilfield in a timely manner.
The Phnom Penh administration earlier extended by four months to 31 October the deadline for production start-up.
However, the date after which serious financial penalties or PSC termination could be imposed has been pushed back from year-end to 30 April next year, giving KrisEnergy some breathing space.
Even so, the Singapore-headquartered independent on Wednesday confirmed that with coronavirus-related restrictive measures still affecting operations, it has applied for a further extension of the host government’s 31 October deadline.
KrisEnergy making progress
Despite the logistical challenges wreaked by the Covid-19 pandemic, KrisEnergy has continued to progress the Apsara oilfield Mini Phase 1A project, with key infrastructure already installed at Block A in the Gulf of Thailand.
Profab in August completed fabrication of the wellhead platform jacket and topsides at its Batam Island yard in Indonesia and installation was performed the following month.
Meanwhile, mechanical completion and commissioning of the Ingenium II production barge was completed in September at Keppel Shipyard in Singapore and the vessel arrived at the Apsara field on 12 October.
KrisEnergy late last month started the Apsara development drilling with the PVD III jack-up rig now on the first of the five-well programme. All operations personnel have been mobilised to the field and the race is on to first oil.
The beleaguered operator in the third quarter spent US$16.2 million on the Cambodia Block A project and made a $6.9 million part-payment for the barge refurbishment costs.
Planned capital expenditure for the fourth quarter estimated to be approximately $37.6 million of which 97.4% will be utilised for activities related to the Apsara development.