KrisEnergy inks letter of award for Cambodia oil platform fabrication

PT Profab, an Indonesian subsidiary of Houston-based National Oilwell Varco, will supply a minimum facilities wellhead platform (mini-platform) to KrisEnergy for the Apsara oil field, Cambodia's maiden oil development.

KrisEnergy's wholly-owned subsidiary has signed a conditional letter of award with PT Profab for the mini-platform. The letter of award is subject to agreement of certain terms in the final contract, a KrisEnergy spokesman told The Business Times.

The scope of work covers key procurement as well as the fabrication and construction of the jacket, topsides and other accessories for the mini-platform, including full pre-commissioning and loading onto a barge for transportation.

The work will be undertaken at PT Profab's facility on Batam Island, Indonesia.

The Apsara oil field lies over the Khmer Basin, an unproduced geological basin in the Cambodian maritime waters of the Gulf of Thailand.

As the basin's production performance is unproven, KrisEnergy's development of the Apsara area will be in several phases to mitigate risk and provide time to collect and analyse critical data to be applied in future phases, the upstream oil and gas firm said on Wednesday.

This development phase, Mini Phase 1A, comprises the mini-platform as well as five initial development wells connected to a production barge for oil, gas and water processing. Shuttle tankers will transport crude oil from the barge.

Apsara oil is scheduled to flow in the first half of 2020 and the field is expected to reach a peak rate of 7,500 barrels of oil per day, KrisEnergy said.

The company, which is undergoing a financial restructuring, on Tuesday reported that its third-quarter net loss had deepened to US$16.7 million, from a loss of US$11 million a year ago.

Its three-month debt moratorium lasts till Nov 14.

Shares of KrisEnergy have been suspended since Aug 14.