Cash-strapped Singapore-headquartered independent KrisEnergy confirmed Tuesday that it had earlier cut salaries as the upstream player tries to keep its head above water whilst restructuring.
KrisEnergy said that, together with operational savings, its Board of Directors and senior management team had agreed to take a 25% reduction in fees and compensation for the past three years.
Also many staff had agreed to a 10% to 25% reduction in pay since 2016.
“The Group, and its stakeholders, have benefited from the reduction in expenditures, which are ongoing cost-cutting measures to aid the company through the adverse macroeconomic conditions and its volatile financial position,” said KrisEnergy.
The company added that it” constantly reviews its activities and cash flow based on various oil price scenarios”.
However, KrisEnergy has certain commitments to host governments that it must honour in order to satisfy licence agreements.
“The timing of those commitments, and where prevailing commodity prices lie, might be out of the company’s control due to external factors,” said KrisEnergy.
The beleaguered E&P company is directing the lion’s share of expenditure to maintaining existing production to bring in revenue, while still spending on its Apsara oilfield phase one development off Cambodia.
KrisEnergy said progress is being made on the Ingenium II production barge for Apsara with the installation of modules such as the power generation sets and central control room.
Meanwhile, steel for the platform facilities has been rolled and was scheduled to leave the mill at the end of September.
“In addition, fast-track processing of the 200-square kilometre 3D seismic data acquired over the Apsara development area is due to be completed around mid-October 2019.
“That data will be used to refine the location and design of Apsara development wells,” added KrisEnergy.
