Cambodia, KrisEnergy sign deal to develop offshore oil field
- SternAAlbifrons
- Expatriate
- Posts: 5752
- Joined: Sat Mar 23, 2019 11:31 am
- Reputation: 3424
- Location: Gilligan's Island
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
For the first time in the decades long history of this project, events will now unfold very quickly.
The decision will possibly be made as early as this month,
and probably announced next month.
Almost certainly all the i's will dotted and the t's crossed by June 30.
The decision will possibly be made as early as this month,
and probably announced next month.
Almost certainly all the i's will dotted and the t's crossed by June 30.
- SternAAlbifrons
- Expatriate
- Posts: 5752
- Joined: Sat Mar 23, 2019 11:31 am
- Reputation: 3424
- Location: Gilligan's Island
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
lol. It seems the race is on to see who can seal the deal first.
The Courts of Singapore V. the RCG
Painstaking drawn-out tortuous evisceration V. The hammer of national pride.
The judges in Singapore have been carefully lining up the ducks for about a year now - but RCG could jump in and take first prize with just with the stroke of a pen
Sok Chan / Khmer Times
April 5, 2021
Following the announcement last week by KrisEnergy Ltd of less-than-anticipated results from oil production at the Apsara Mini Phase 1A development, a senior official from the Ministry of Mines and Energy said the government could penalise the company or terminate its licence.
Singapore-based KrisEnergy announced last week that the company’s latest analysis indicated reservoirs encountered in the five development wells in the Khmer Basin of the Gulf of Thailand are less productive and continuous in nature than expected compared with the results from the original appraisal wells.
Cheap Sour, director-general of the General Department of Petroleum at the Ministry of Mines and Energy, said the ministry has received the primary information from KrisEnergy and noted that the company has informed the ministry that it will be providing a further explanation on the actual oil production compared with previous forecasts.
“We are waiting [to learn] whether the reason [behind the shortfall from the initial forecast] is suitable or not in terms of the [technical issues],” said Sour. “The Apsara Mini Phase 1A development is just a small-scale production [and a] first step, but we do not know what the company evaluation in the actual production is because they are [holding internal discussions]. However, the company told us that they allowed third-party petroleum engineering consultant Netherland, Sewell & Associates Inc (NSAI) to make [an] assessment [of] the resources in the bloc. Therefore, we have to wait.”
Sour noted that because the ministry is one of the signatories with KrisEnergy on the oil production extraction agreement for Block A in the Apsara area, the ministry will check on the agreement as to whether the company can fulfill the agreed criteria or not.
“We will give them a warning and ask them to fix it (LOL) if they do not follow the agreement. Once they have received the warning, if their fixing work [is] not yet acceptable, we will take action based on the [language of the] agreement. They could be fined or [we] could terminate the agreement,” said Sour.
KrisEnergy’s statement last week said. “As of March 30, the gross production rate at the Apsara field, known as Mini Phase 1A, was 2,493 barrels of oil per day (bopd). The average gross production rate for the field for the Feb 23 to March 30 period was 2,883 bopd.To date, the highest production rate achieved at the Apsara field was 3,534 bopd on 27 March 2021. Work is ongoing to evaluate the results and to formulate future plans. Consequently, the pre-development forecast of peak production of 7,500 bopd will not be achievable for Apsara Mini Phase 1A. In line with lower production rates, preliminary observations also indicate that the ultimate recovery from the five development wells is likely to be significantly lower than predevelopment expectations as the limited continuity of the reservoirs encountered will decrease the original oil-in-place estimates associated with the producing wells.”
Commercial Grade
MultiFit PFD -...
$104.50
Freetime PFD - Adult
Lifejacket -...
$76.50
Kayak Tie Down
Straps with Silicone...
$32.99
Kayak Holder Kit,
Transport SUP &...
$209
A full set of PFDs and a shit load of straps for the hatches please.
The Courts of Singapore V. the RCG
Painstaking drawn-out tortuous evisceration V. The hammer of national pride.
The judges in Singapore have been carefully lining up the ducks for about a year now - but RCG could jump in and take first prize with just with the stroke of a pen
Sok Chan / Khmer Times
April 5, 2021
Following the announcement last week by KrisEnergy Ltd of less-than-anticipated results from oil production at the Apsara Mini Phase 1A development, a senior official from the Ministry of Mines and Energy said the government could penalise the company or terminate its licence.
Singapore-based KrisEnergy announced last week that the company’s latest analysis indicated reservoirs encountered in the five development wells in the Khmer Basin of the Gulf of Thailand are less productive and continuous in nature than expected compared with the results from the original appraisal wells.
Cheap Sour, director-general of the General Department of Petroleum at the Ministry of Mines and Energy, said the ministry has received the primary information from KrisEnergy and noted that the company has informed the ministry that it will be providing a further explanation on the actual oil production compared with previous forecasts.
“We are waiting [to learn] whether the reason [behind the shortfall from the initial forecast] is suitable or not in terms of the [technical issues],” said Sour. “The Apsara Mini Phase 1A development is just a small-scale production [and a] first step, but we do not know what the company evaluation in the actual production is because they are [holding internal discussions]. However, the company told us that they allowed third-party petroleum engineering consultant Netherland, Sewell & Associates Inc (NSAI) to make [an] assessment [of] the resources in the bloc. Therefore, we have to wait.”
Sour noted that because the ministry is one of the signatories with KrisEnergy on the oil production extraction agreement for Block A in the Apsara area, the ministry will check on the agreement as to whether the company can fulfill the agreed criteria or not.
“We will give them a warning and ask them to fix it (LOL) if they do not follow the agreement. Once they have received the warning, if their fixing work [is] not yet acceptable, we will take action based on the [language of the] agreement. They could be fined or [we] could terminate the agreement,” said Sour.
KrisEnergy’s statement last week said. “As of March 30, the gross production rate at the Apsara field, known as Mini Phase 1A, was 2,493 barrels of oil per day (bopd). The average gross production rate for the field for the Feb 23 to March 30 period was 2,883 bopd.To date, the highest production rate achieved at the Apsara field was 3,534 bopd on 27 March 2021. Work is ongoing to evaluate the results and to formulate future plans. Consequently, the pre-development forecast of peak production of 7,500 bopd will not be achievable for Apsara Mini Phase 1A. In line with lower production rates, preliminary observations also indicate that the ultimate recovery from the five development wells is likely to be significantly lower than predevelopment expectations as the limited continuity of the reservoirs encountered will decrease the original oil-in-place estimates associated with the producing wells.”
Commercial Grade
MultiFit PFD -...
$104.50
Freetime PFD - Adult
Lifejacket -...
$76.50
Kayak Tie Down
Straps with Silicone...
$32.99
Kayak Holder Kit,
Transport SUP &...
$209
A full set of PFDs and a shit load of straps for the hatches please.
- SternAAlbifrons
- Expatriate
- Posts: 5752
- Joined: Sat Mar 23, 2019 11:31 am
- Reputation: 3424
- Location: Gilligan's Island
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
OCBC Bank
OCBC Treasury Research /Asia Credit Daily Report
Today
Keppel Corporation Limited (“KEP”) | Issuer profile: Neutral (4) and KrisEnergy Ltd (“KrisEnergy”) |
Issuer profile:Unrated
▪ KEP’s ~40%-owned associate company KrisEnergy announced that based on its preliminary analysis,
five of its key development wells at the Aspara Mini Phase 1A development (“Aspara”) appear less
productive than initial forecast. The wells were expected to provide cashflow to fund on-going
operations of KrisEnergy.
▪ Given the significantly lower estimated ultimate recovery and cashflow from Aspara, material
uncertainty exists over KrisEnergy’s ability to complete its current restructuring exercise and to
continue as a going concern.
▪ A third-party petroleum engineering consultant, Netherland, Sewell & Associates, Inc. (“NSAI”), will
be independently assessing the ultimate recovery from the current five development wells. NSAI’s
initial review is expected to conclude in April 2021.
▪ In our view, this development heightens the risk of an outright default at KrisEnergy. Based on
Bloomberg data, KrisEnergy has an aggregate of ~SGD470mn of bonds outstanding. KEP is also a
bondholder of the KRISSP 0% ‘24s.
▪ As at 31 December 2020, the equity interest and warrants which KEP holds in KrisEnergy has been
written down to zero though KEP still records(1) SGD35.1mn from the KrisEnergy zero-coupon notes,
(2) SGD77.2mn in loan receivable where KEP had lent money to KrisEnergy for project financing
purposes and (3) SGD29.2mn recorded as contract assets (construction contract for a production
barge).
▪ Additionally, KEP is economically exposed to a revolving credit facility which a bank has extended to
KrisEnergy. As at 31 December 2020, this amounted to SGD247.3mn. In the event that KrisEnergy
defaults, we expect that KEP will need to “make-whole” the bank lender.
This economic exposure is an off-balance sheet item of KEP. We have factored in the possibility of a default of KrisEnergy into
our issuer profile for KEP.
(Keppell Corp, KEP, a Singaporean marine engineering behemoth is effectively KrisEnergy's parent company)
OCBC Treasury Research /Asia Credit Daily Report
Today
Keppel Corporation Limited (“KEP”) | Issuer profile: Neutral (4) and KrisEnergy Ltd (“KrisEnergy”) |
Issuer profile:Unrated
▪ KEP’s ~40%-owned associate company KrisEnergy announced that based on its preliminary analysis,
five of its key development wells at the Aspara Mini Phase 1A development (“Aspara”) appear less
productive than initial forecast. The wells were expected to provide cashflow to fund on-going
operations of KrisEnergy.
▪ Given the significantly lower estimated ultimate recovery and cashflow from Aspara, material
uncertainty exists over KrisEnergy’s ability to complete its current restructuring exercise and to
continue as a going concern.
▪ A third-party petroleum engineering consultant, Netherland, Sewell & Associates, Inc. (“NSAI”), will
be independently assessing the ultimate recovery from the current five development wells. NSAI’s
initial review is expected to conclude in April 2021.
▪ In our view, this development heightens the risk of an outright default at KrisEnergy. Based on
Bloomberg data, KrisEnergy has an aggregate of ~SGD470mn of bonds outstanding. KEP is also a
bondholder of the KRISSP 0% ‘24s.
▪ As at 31 December 2020, the equity interest and warrants which KEP holds in KrisEnergy has been
written down to zero though KEP still records(1) SGD35.1mn from the KrisEnergy zero-coupon notes,
(2) SGD77.2mn in loan receivable where KEP had lent money to KrisEnergy for project financing
purposes and (3) SGD29.2mn recorded as contract assets (construction contract for a production
barge).
▪ Additionally, KEP is economically exposed to a revolving credit facility which a bank has extended to
KrisEnergy. As at 31 December 2020, this amounted to SGD247.3mn. In the event that KrisEnergy
defaults, we expect that KEP will need to “make-whole” the bank lender.
This economic exposure is an off-balance sheet item of KEP. We have factored in the possibility of a default of KrisEnergy into
our issuer profile for KEP.
(Keppell Corp, KEP, a Singaporean marine engineering behemoth is effectively KrisEnergy's parent company)
- CEOCambodiaNews
- Expatriate
- Posts: 62459
- Joined: Sun Oct 12, 2014 5:13 am
- Reputation: 4034
- Location: CEO Newsroom in Phnom Penh, Cambodia
- Contact:
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
Indebted Oil Company Reports Lower-Than-Expected Oil at Cambodian Block
4 min read
Danielle Keeton-Olsen
| Tue Apr 6, 2021 6:30 pm
KrisEnergy has warned that its current production rate at Cambodia’s Apsara offshore oil block has yielded only around half the company’s projected peak rate, and it has extended debt repayment deadlines and brought in an engineering firm to assess the situation amid “material uncertainty … to continue as a going concern.”
In a shareholder announcement on March 31, the company said that the Apsara block will not be able to reach the peak production rate the company had predicted of 7,500 barrels of oil per day in its first phase of development. Average gross production rate from late February through March reached 2,883 barrels a day — less than half the predicted peak rate.
The company brought all five wells into production for its “mini” first phase of development through January and February, but the “ultimate recovery,” or total oil extracted from the wells, will most likely fall “significantly lower” than what it expected, KrisEnergy said in the disclosure.
The company said it found “smaller reservoirs with limited continuity, which are also less productive compared with the appraisal flow tests” compared to what it had predicted through models in line with industry standards. KrisEnergy added that it hired Netherland, Sewell & Associates, a petroleum engineering consultant, to reevaluate the block, with results expected in April.
Cheap Sour, the Mines and Energy Ministry’s general director of petroleum, said KrisEnergy had informed the government of its low production rates in the “initial stage” at the end of last month, and that officials were waiting to hear more from the company.
“KE will come back and explain [to] us at the end of this month or next month as they are working with their independent expert now,” he said in a message.
When asked whether this could impact Cambodia’s plans to build an oil refinery, he said the projects were separate and the government was still looking for investors.
https://vodenglish.news/indebted-oil-co ... ian-block/
4 min read
Danielle Keeton-Olsen
| Tue Apr 6, 2021 6:30 pm
KrisEnergy has warned that its current production rate at Cambodia’s Apsara offshore oil block has yielded only around half the company’s projected peak rate, and it has extended debt repayment deadlines and brought in an engineering firm to assess the situation amid “material uncertainty … to continue as a going concern.”
In a shareholder announcement on March 31, the company said that the Apsara block will not be able to reach the peak production rate the company had predicted of 7,500 barrels of oil per day in its first phase of development. Average gross production rate from late February through March reached 2,883 barrels a day — less than half the predicted peak rate.
The company brought all five wells into production for its “mini” first phase of development through January and February, but the “ultimate recovery,” or total oil extracted from the wells, will most likely fall “significantly lower” than what it expected, KrisEnergy said in the disclosure.
The company said it found “smaller reservoirs with limited continuity, which are also less productive compared with the appraisal flow tests” compared to what it had predicted through models in line with industry standards. KrisEnergy added that it hired Netherland, Sewell & Associates, a petroleum engineering consultant, to reevaluate the block, with results expected in April.
Cheap Sour, the Mines and Energy Ministry’s general director of petroleum, said KrisEnergy had informed the government of its low production rates in the “initial stage” at the end of last month, and that officials were waiting to hear more from the company.
“KE will come back and explain [to] us at the end of this month or next month as they are working with their independent expert now,” he said in a message.
When asked whether this could impact Cambodia’s plans to build an oil refinery, he said the projects were separate and the government was still looking for investors.
https://vodenglish.news/indebted-oil-co ... ian-block/
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline
Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!
Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US
Cambodia Expats Online is the most popular community in the country. JOIN TODAY
Follow CEO on social media:
Facebook
Twitter
YouTube
Instagram
Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!
Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US
Cambodia Expats Online is the most popular community in the country. JOIN TODAY
Follow CEO on social media:
YouTube
- SternAAlbifrons
- Expatriate
- Posts: 5752
- Joined: Sat Mar 23, 2019 11:31 am
- Reputation: 3424
- Location: Gilligan's Island
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
Wow ^^^
Not a KrisEnergy press release as "news".
It looks like CEO News has finally got the jump on all those famous "journo's" of the Diplomat, Asia Weak, PPP, KT, Bloomberg and the BBC who have all carried on publishing KE press releases and giving credence to this circus since i first called it out as "100% BS" 12 months ago.
Don't journalists and "News" orgs read company reports and court case minutes before they reprint the PR these days?
from the press room
I feel a bit like the weird guy in "The Big Short" who called out the US Home Loan Fraud for 12 months before that circus tent collapsed on everybody.
Pity KE shares were suspended at 3c a year ago - 1/40th of their value when they took control of Aspara. I could have cleaned up on a Big Short myself. (but the insiders had already scored that)
But also like all the principals of The Big Short i don't feel smarmy at seeing it first - "gutted", "sickened", "shattered" and "disgusted at the world wide frauds of The System" are more applicable terms.
Flocking angry at the journos tho'. (i contacted a few, but like the WSJournal bloke in the Big Short - they would go near it with a barge pole. Just kept up the PR).
And those worms from the "Professions" - those morally bankrupt facilitators who are supposed to have ethics.
Not a KrisEnergy press release as "news".
It looks like CEO News has finally got the jump on all those famous "journo's" of the Diplomat, Asia Weak, PPP, KT, Bloomberg and the BBC who have all carried on publishing KE press releases and giving credence to this circus since i first called it out as "100% BS" 12 months ago.
Don't journalists and "News" orgs read company reports and court case minutes before they reprint the PR these days?
from the press room
I feel a bit like the weird guy in "The Big Short" who called out the US Home Loan Fraud for 12 months before that circus tent collapsed on everybody.
Pity KE shares were suspended at 3c a year ago - 1/40th of their value when they took control of Aspara. I could have cleaned up on a Big Short myself. (but the insiders had already scored that)
But also like all the principals of The Big Short i don't feel smarmy at seeing it first - "gutted", "sickened", "shattered" and "disgusted at the world wide frauds of The System" are more applicable terms.
Flocking angry at the journos tho'. (i contacted a few, but like the WSJournal bloke in the Big Short - they would go near it with a barge pole. Just kept up the PR).
And those worms from the "Professions" - those morally bankrupt facilitators who are supposed to have ethics.
- canucklhead
- Expatriate
- Posts: 1107
- Joined: Mon Oct 20, 2014 9:43 am
- Reputation: 439
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
The horror, the horror. That didnt take long!
- CEOCambodiaNews
- Expatriate
- Posts: 62459
- Joined: Sun Oct 12, 2014 5:13 am
- Reputation: 4034
- Location: CEO Newsroom in Phnom Penh, Cambodia
- Contact:
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
KrisEnergy on verge of collapse as Cambodia bet backfires
Singapore-listed KrisEnergy – widely seen as a zombie company - is finally on the verge of collapse after production from its Apsara oilfield offshore Cambodia failed to meet expectations. Significantly, it should come as no surprise that the frontier basin disappointed.
by Damon Evans
07/04/2021, 6:15 am
Singapore-listed KrisEnergy – widely seen as a zombie company – is finally on the verge of collapse after production from its Apsara oilfield offshore Cambodia failed to meet expectations. Significantly, it should come as no surprise that the frontier basin disappointed.
The company, majority owned by Singapore conglomerate Keppel Corporation, reported last week that output at its offshore Block A concession in Cambodia was less than half of the originally expected rate.
KrisEnergy conceded that the news created “material uncertainty” over whether the company, weighed down by debts of more than $500 million, can complete its planned restructuring.
KrisEnergy had been betting on oil production from its Cambodia development, which started up in late December 2020, to provide cashflow to keep the company operating.
“Given the significantly lower estimated ultimate recovery and cashflow from the Apsara
Mini Phase 1A development, material uncertainty exists over the group’s ability to complete the restructuring exercise and to continue as a going concern,” KrisEnergy said in a statement.
The five-well platform, installed between December and February, was “less productive and continuous in nature” than had been forecast, the company said.
Average production between 23 February and 30 March was 2,883 barrels of oil per day – far short of the forecast peak production of 7,500 bopd, a goal that was now “not achievable,” reported KrisEnergy.
KrisEnergy added that it had hired an independent consultant to reassess the field’s ultimate recovery but admitted it would be “significantly lower” than forecasts.
Moreover, some industry watchers believe KrisEnergy already knew that the Apsara development about 160km off Cambodia’s coast in the Gulf of Thailand would disappoint. But KrisEnergy declined to comment on the matter.
“Many inside KrisEnergy knew that Cambodia was going to underperform, including external experts, such as reserve auditors. I have seen documents that suggest their Cambodian numbers were wildly optimistic,” a senior industry executive told Energy Voice.
“We didn’t believe their mini phase would ever have legs. They needed a story to talk up and they also did not want to lose their Block A concession, so they came up with the mini development. This kind of appeased the Cambodian government and allowed them to keep the restructuring effort going,” added the source.
The Apsara Mini Phase 1A development was designed as an initial small-scale project to observe and appraise reservoir performance in the previously unproduced Khmer basin. It will collect vital production and subsurface data to determine the long-term potential and value of the Apsara area in Block A, said KrisEnergy.
But using the development of Apsara in Block A to keep going was a desperate one. KrisEnergy initially joined Block A as a partner in 2010. Neither the then operator Chevron, nor the partners Moeco and GS Energy could see a commercial way forward to make a development worthwhile. Incredibly, in 2014 KrisEnergy paid $65 million for Chevron’s 28.5% and operatorship.
After acquiring the remaining interests in 2016, KrisEnergy tried to farm-out a share of Block A and the Apsara field to a range of companies, but all viewers rejected it as non-commercial. In 2016, the certifier NSAI gave a most likely contingent resource recoverable volume of 8.5 million barrels of oil. More recently as the development progressed, and reserves were allowed to be claimed (as a development looked likely), the most likely (2P) reserve number became 6.8 million barrels of oil. This is clearly published by KrisEnergy, as required by the Singapore Stock Exchange. Of these 6.8 million barrels, 6.4 million barrels were the company’s 95% share, but only 5.18 million barrels (76%) were their revenue entitlement volume.
Based on the NSAI certified 2P oil volume of 6.8 million barrels, production actually equates to only 2,700 bopd in the first year, declining at 10% per year for the expected 10-year field life. If one uses a more conservative 20% decline rate per year, the first year average production, as suggested by the NSAI reserves, equates to 4,075 bopd. In other words, the NSAI stated and published reserves indicate that first year production would be between 2,700 bopd and 4,075 bopd, but this was nowhere near the KrisEnergy-suggested initial 7,500 bopd. This should have been a red warning flag, but it seems to have been ignored. The actual production figures seem more in line with the NSAI work, but the year is young and average 2021 production may well fall below 2,700 bopd. On 30 March, production stood at 2,493 bopd.
“It’s sad really. It was a big bet on Cambodia. I think everybody knew there were sub-surface issues and with all the best will and intent in the world, they have not been able to solve those issues. That makes the project marginally economic, even uneconomic,” a shareholder in KrisEnergy told Energy Voice.
Based on the information KrisEnergy has made public it appears that the Block A area in the Khmer basin has a combination of poor reservoir quality and limited reservoir extent. This makes development tough as more wells, which have poor flow rates, need to be drilled, substantially increasing costs.
A year ago, KrisEnergy borrowed $87 million from Keppel to drill the wells and build the production platform. In total, KrisEnergy has probably spent close to $200 million to acquire Block A and develop it. Now it seems unlikely that the phase 1A development will be able to recoup this investment.
More here. Full article: https://www.energyvoice.com/oilandgas/a ... backfires/
Singapore-listed KrisEnergy – widely seen as a zombie company - is finally on the verge of collapse after production from its Apsara oilfield offshore Cambodia failed to meet expectations. Significantly, it should come as no surprise that the frontier basin disappointed.
by Damon Evans
07/04/2021, 6:15 am
Singapore-listed KrisEnergy – widely seen as a zombie company – is finally on the verge of collapse after production from its Apsara oilfield offshore Cambodia failed to meet expectations. Significantly, it should come as no surprise that the frontier basin disappointed.
The company, majority owned by Singapore conglomerate Keppel Corporation, reported last week that output at its offshore Block A concession in Cambodia was less than half of the originally expected rate.
KrisEnergy conceded that the news created “material uncertainty” over whether the company, weighed down by debts of more than $500 million, can complete its planned restructuring.
KrisEnergy had been betting on oil production from its Cambodia development, which started up in late December 2020, to provide cashflow to keep the company operating.
“Given the significantly lower estimated ultimate recovery and cashflow from the Apsara
Mini Phase 1A development, material uncertainty exists over the group’s ability to complete the restructuring exercise and to continue as a going concern,” KrisEnergy said in a statement.
The five-well platform, installed between December and February, was “less productive and continuous in nature” than had been forecast, the company said.
Average production between 23 February and 30 March was 2,883 barrels of oil per day – far short of the forecast peak production of 7,500 bopd, a goal that was now “not achievable,” reported KrisEnergy.
KrisEnergy added that it had hired an independent consultant to reassess the field’s ultimate recovery but admitted it would be “significantly lower” than forecasts.
Moreover, some industry watchers believe KrisEnergy already knew that the Apsara development about 160km off Cambodia’s coast in the Gulf of Thailand would disappoint. But KrisEnergy declined to comment on the matter.
“Many inside KrisEnergy knew that Cambodia was going to underperform, including external experts, such as reserve auditors. I have seen documents that suggest their Cambodian numbers were wildly optimistic,” a senior industry executive told Energy Voice.
“We didn’t believe their mini phase would ever have legs. They needed a story to talk up and they also did not want to lose their Block A concession, so they came up with the mini development. This kind of appeased the Cambodian government and allowed them to keep the restructuring effort going,” added the source.
The Apsara Mini Phase 1A development was designed as an initial small-scale project to observe and appraise reservoir performance in the previously unproduced Khmer basin. It will collect vital production and subsurface data to determine the long-term potential and value of the Apsara area in Block A, said KrisEnergy.
But using the development of Apsara in Block A to keep going was a desperate one. KrisEnergy initially joined Block A as a partner in 2010. Neither the then operator Chevron, nor the partners Moeco and GS Energy could see a commercial way forward to make a development worthwhile. Incredibly, in 2014 KrisEnergy paid $65 million for Chevron’s 28.5% and operatorship.
After acquiring the remaining interests in 2016, KrisEnergy tried to farm-out a share of Block A and the Apsara field to a range of companies, but all viewers rejected it as non-commercial. In 2016, the certifier NSAI gave a most likely contingent resource recoverable volume of 8.5 million barrels of oil. More recently as the development progressed, and reserves were allowed to be claimed (as a development looked likely), the most likely (2P) reserve number became 6.8 million barrels of oil. This is clearly published by KrisEnergy, as required by the Singapore Stock Exchange. Of these 6.8 million barrels, 6.4 million barrels were the company’s 95% share, but only 5.18 million barrels (76%) were their revenue entitlement volume.
Based on the NSAI certified 2P oil volume of 6.8 million barrels, production actually equates to only 2,700 bopd in the first year, declining at 10% per year for the expected 10-year field life. If one uses a more conservative 20% decline rate per year, the first year average production, as suggested by the NSAI reserves, equates to 4,075 bopd. In other words, the NSAI stated and published reserves indicate that first year production would be between 2,700 bopd and 4,075 bopd, but this was nowhere near the KrisEnergy-suggested initial 7,500 bopd. This should have been a red warning flag, but it seems to have been ignored. The actual production figures seem more in line with the NSAI work, but the year is young and average 2021 production may well fall below 2,700 bopd. On 30 March, production stood at 2,493 bopd.
“It’s sad really. It was a big bet on Cambodia. I think everybody knew there were sub-surface issues and with all the best will and intent in the world, they have not been able to solve those issues. That makes the project marginally economic, even uneconomic,” a shareholder in KrisEnergy told Energy Voice.
Based on the information KrisEnergy has made public it appears that the Block A area in the Khmer basin has a combination of poor reservoir quality and limited reservoir extent. This makes development tough as more wells, which have poor flow rates, need to be drilled, substantially increasing costs.
A year ago, KrisEnergy borrowed $87 million from Keppel to drill the wells and build the production platform. In total, KrisEnergy has probably spent close to $200 million to acquire Block A and develop it. Now it seems unlikely that the phase 1A development will be able to recoup this investment.
More here. Full article: https://www.energyvoice.com/oilandgas/a ... backfires/
Join the Cambodia Expats Online Telegram Channel: https://t.me/CambodiaExpatsOnline
Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!
Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US
Cambodia Expats Online is the most popular community in the country. JOIN TODAY
Follow CEO on social media:
Facebook
Twitter
YouTube
Instagram
Cambodia Expats Online: Bringing you breaking news from Cambodia before you read it anywhere else!
Have a story or an anonymous news tip for CEO? Need advertising? CONTACT US
Cambodia Expats Online is the most popular community in the country. JOIN TODAY
Follow CEO on social media:
YouTube
- SternAAlbifrons
- Expatriate
- Posts: 5752
- Joined: Sat Mar 23, 2019 11:31 am
- Reputation: 3424
- Location: Gilligan's Island
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
You read it here (and only here) first folks - about a year ago. Every single aspect.CEOCambodiaNews wrote: ↑Wed Apr 07, 2021 2:47 pm KrisEnergy on verge of collapse as Cambodia bet backfires
Singapore listed KrisEnergy – zombie company
Moreover, some industry watchers believe KrisEnergy already knew that the Apsara development about 160km off Cambodia’s coast in the Gulf of Thailand would disappoint. But KrisEnergy declined to comment on the matter.
“Many inside KrisEnergy knew that Cambodia was going to underperform, including external experts, such as reserve auditors. I have seen documents that suggest their Cambodian numbers were wildly optimistic,” a senior industry executive told Energy Voice.
“We didn’t believe their mini phase would ever have legs. They needed a story to talk up and they also did not want to lose their Block A concession, so they came up with the mini development. This kind of appeased the Cambodian government and allowed them to keep the restructuring effort going,” added the source.
It seems ^^^ that all the insiders knew . And it was plainly obvious to a weird little uneducated nobody like me, as soon as i had read the first couple of dozen (of hundreds) of publicly available company and court docs that this caper was all, quote "100% BS".
So, I want to know why all of Asia's best news orgs and journalist just reprinted KrisEnergy's press releases right up until last Thursday afternoon.
A few cast vague doubts about how much benefit the "billions" would really bring to Cambodia - but not one challenged the bullshit basis of the whole shebang.
Why not?
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
Maybe it will be nationalized and given to the owners of the new refinery.
- SternAAlbifrons
- Expatriate
- Posts: 5752
- Joined: Sat Mar 23, 2019 11:31 am
- Reputation: 3424
- Location: Gilligan's Island
Re: Cambodia, KrisEnergy sign deal to develop offshore oil field
lol ^^
Rig bait.
Free oil field, just build the refinery.
Sadly (straight face) neither are likely to be developed in the near-mid term.
From what i can read in the tea leaves, neither project would have the necessary competitive advantages that other places in the region have - for both crude production, and for refining capacity.
Not to mention that the whole financial and tech fundamentals are rapidly changing for oil.
I reckon Cambodia has dodged a bullet.
All that environmental pain - for very small rewards - then tomorrow morning it is all stranded assets and/or being held hostage to superseded tech and financials.
PS, Kh does not have to nationalise the field. It is still the owner - AND from what i can figure, can easily cancel the concession for any number of defaults that KrisEnergy has already handed to them on a platter.
From my reading - KE will not be auctioning off the concession in the (likely-) liquidation. It will already have been withdrawn.
Deposit lost.
Rig bait.
Free oil field, just build the refinery.
Sadly (straight face) neither are likely to be developed in the near-mid term.
From what i can read in the tea leaves, neither project would have the necessary competitive advantages that other places in the region have - for both crude production, and for refining capacity.
Not to mention that the whole financial and tech fundamentals are rapidly changing for oil.
I reckon Cambodia has dodged a bullet.
All that environmental pain - for very small rewards - then tomorrow morning it is all stranded assets and/or being held hostage to superseded tech and financials.
PS, Kh does not have to nationalise the field. It is still the owner - AND from what i can figure, can easily cancel the concession for any number of defaults that KrisEnergy has already handed to them on a platter.
From my reading - KE will not be auctioning off the concession in the (likely-) liquidation. It will already have been withdrawn.
Deposit lost.
-
- Similar Topics
- Replies
- Views
- Last post
-
- 4 Replies
- 1549 Views
-
Last post by CEOCambodiaNews
-
- 0 Replies
- 659 Views
-
Last post by yong
-
- 0 Replies
- 1266 Views
-
Last post by Gazzy
-
- 0 Replies
- 1294 Views
-
Last post by CEOCambodiaNews
Who is online
Users browsing this forum: No registered users and 328 guests