Chevron sale paves way for first offshore Cambodia oil project
KrisEnergy (Asia) has agreed to acquire the entire issued share capital of Chevron Overseas Petroleum (Cambodia) for $65 million.
The Chevron subsidiary has a 30% operating interest in offshore block A, where the company discovered the Apsara oil field during the previous decade. In 2010 it submitted a production permit application (PPA) which was updated in 2012.
The contract area covers 4,709 sq km (1,818 sq mi) over the Khmer basin in the Gulf of Thailand, in water depths ranging from 50-80 m (164-262 ft).
Assuming assent from Cambodia’s government for the transaction (existing partners MOECO Cambodia and GS Energy Corp. have given their approvals), Chevron Cambodia will be renamed KrisEnergy (Apsara).
KrisEnergy already has an indirect interest to the block, and this will rise to 52.5% post-transaction, with the Cambodia National Petroleum Authority (CNPA) backing in with a 5% stake.
Cambodia has no oil or gas production and the Apsara PPA is the first to be evaluated by the Ministry of Mines and Energy, the petroleum regulator that succeeds CNPA. The partners plan to work with the Cambodian authorities to agree on terms and conditions of the PPA before committing to a final investment decision for the Apsara development.
Phase 1 will include 24 development wells from a single platform with oil processed and then stored in an offshore vessel prior to export, a similar arrangement to other fields in the Gulf of Thailand. Production from the initial single platform is expected to peak at around 10,000 b/d of oil.
Outside of the immediate development area, six additional structural trends have been identified and mapped, based on 3D seismic interpretation and exploration drilling. Two future development phases in the Apsara area on discoveries made to date may involve installation of up to nine platforms, each with 24 wells.
Further development across the license area could eventually involve up to 44 production platforms in seven separate producing areas.