Kris Energy Exits Vietnam PSC
Southeast Asia-focused KrisEnergy has entered into a farm-out agreement "with a major international oil and gas company" for the transfer of its 100% working interest in the Block 115/09 production sharing contract, offshore Vietnam for a nominal cash consideration, it said February 14.
“The consideration was arrived at taking into account that the transfer of the exploration block reduces the company’s liabilities and mandatory work commitments comprising a 3D seismic acquisition programme of at least 850 km2 along with the processing of the data and the drilling of one exploration well,” it said.
Kris believes it is more prudent to allocate its capital to funding near-term development, in particular the development of the Apsara oil field in Cambodia Block A.
The transfer of Block 115/09 working interest and operatorship is subject to a number of conditions including approvals from the relevant government authorities. The long stop date for the farm-out agreement is June 30, 2020, the company said.