Chevron bails on Cambodian oil field stake

Soi Dog · Post by **Soi Dog** » Sat Aug 16, 2014 8:37 am

Chevron writes off a $100 million loss after 12 years.

PPP wrote:Chevron to sell off its Block A
Tue, 12 August 2014
Hor Kimsay and Daniel de Carteret
Singaporean-listed oil and gas firm KrisEnergy has agreed to buy out Chevron’s stake in an offshore site in the Gulf of Thailand for $65 million, according to a statement from KrisEnergy.

KrisEnergy, which already holds a 25 per cent share in the 4,709-square-kilometre site known as Block A, will acquire Chevron Cambodia’s 30 per cent holding, an announcement on the Singapore exchange issued yesterday says.

“Chevron, with its experience in the Gulf of Thailand, has done some tremendous work in Block A and we hope that with the KrisEnergy entity now holding operator ship, we will be able to steer the Apsara development plans forward to first production as quickly and cost effectively as possible,” Richard Lorentz, director of business development for KrisEnergy, said in the statement.

Other joint venture partners MOECO Cambodia and GS Energy Corporation have reportedly approved the deal, according to KrisEnergy. However, the Cambodian government has yet to agree to the conditions.

Contacted yesterday, Meng Saktheara, secretary of state at the Ministry of Mines and Energy, said the ministry had not yet received a formal request from the companies, but he was confident the deal would go through.

“We will examine this and if we find that it can affect the government’s advantage, we will reject this selling and buying of the share,” Sakthera said.

“However, in general, it should not be having any [negative] impact because they are all international companies,” he added.

Chevron declared in 2010 that oil reserves in Block A were economically viable. However, negotiations with the government have delayed the long-anticipated project, which could greatly reduce Cambodia’s dependency on energy imports.

Steve Glick, former Chevron Cambodia country manager, told the Post in 2011 that more than $160 million had been spent assessing the commercial viability of the offshore site, referred to as Block A.

According to the KrisEnergy statement, Chevron’s share of the site was valued using both exploration costs already incurred by the company and the potential of the oil field.

A Chevron spokesman confirmed that an in principle deal had been reached.

“Chevron is pleased to have been involved in the development of the Cambodian oil and gas industry, and are proud of having made new oil discoveries in Block A over the last 12 years,” Chevron spokesman Alex Yelland said yesterday in an email.

KrisEnergy expects to yield 10,000 barrells [sic] of oil per day from Block A when it is operational, according to yesterday’s statement.

http://phnompenhpost.com/business/chevr ... -its-block

HotRecruiter · Post by **HotRecruiter** » Sat Aug 16, 2014 11:57 am

Ouch ... Chevron's pulling out because the corrupt government is ransoming the people and stealing all their benefits?

Joon · Post by **Joon** » Sat Aug 16, 2014 12:05 pm

Tinfoil hat time everyone.

frank lee bent · Post by **frank lee bent** » Sat Aug 16, 2014 12:44 pm

There are going to be a lot of unhappy tex mex restaurateurs at the beach.

at least the airport had a flight, in and out.

kiwiincambodia · Post by **kiwiincambodia** » Sun Aug 17, 2014 4:11 am

This is actually really good for the industry. It should open it up where people / companies can make money.

Chevron fucked up when it came to the contract and got screwed on the wording. Do I feel bad for them ..... No. However the government took them to task all because they forgot an "s".