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Cambodia chalks up five oil wells

Thou Vireak THE PHNOM PENH POST Tue, March 9, 2021

Singapore-based oil and gas exploration company KrisEnergy Ltd on December 28 extracted the first drop of crude oil from Cambodian waters. MINISTRY OF MINES AND ENERGY

Singapore-based oil and gas firm KrisEnergy Ltd began extracting crude oil from four additional wells late last month, according to Cheap Sour, a senior official at the Ministry of Mines and Energy.

This comes after the December 28 maiden oil extraction from the A-01D well – part of the five-well mini-platform featured in KrisEnergy’s “Mini-Phase 1A” development – in the offshore Cambodia Block A concession of the Khmer Basin’s Apsara oilfield.

And the PV Drilling III jack-up rig began drilling the remaining four wells A-02D through A-05D on January 30, according to Prime Minister Hun Sen.

Sour, director-general of the ministry’s General Department of Petroleum, told The Post that “If the five wells perform well, [KrisEnergy] will drill even more wells as their plans dictate.”

In late December, Hun Sen said the Kingdom could net about $30 million per annum from the commodity if international oil prices remain at around $55 per barrel, citing predictions from energy minister Suy Sem.

“Estimates show that we’ll pump out between 7,000 and 7,500 barrels a day, which is a considerably miniscule volume that won’t leave a profound impact on our economy soon, but a good start for the oil and gas industry in Cambodia,” the prime minister said.

December 28’s highly-anticipated milestone extraction from offshore Block A made the Kingdom the eighth oil producer in the 10-member ASEAN, with only Singapore and land-locked Laos not producing crude.

In a press statement issued the following day, Kelvin Tang, president and CEO of KrisEnergy’s Cambodian operations, stressed that Apsara’s first drop of oil marks a 10-year journey from when KrisEnergy initially became a partner in Block A.

“I convey my heartfelt appreciation to all relevant ministries and authorities for their assistance, cooperation and their dedication to get the Apsara oil development over the line. KrisEnergy is honoured to be a part of this historic occasion,” he said.

With Covid-19 hanging over the world, Tang added: “Progressing Apsara to first oil has been a tremendous achievement and a testament to the determination of the KrisEnergy team and the strong cooperation of our contractors and suppliers.

“Our task now is to complete drilling of the four remaining wells, stabilise production and monitor performance so that we may assess the best path forward to optimise Cambodia’s oil production and the value of the asset in the years ahead.”

https://www.phnompenhpost.com/business/cambodia-chalks-five-oil-wells

SOURCE – THE PHNOM PENH POST, CAMBODIA Tue, March 9, 2021

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