Cambodia: KrisEnergy all set to sign petroleum extraction agreement

Cambodia: KrisEnergy all set to sign petroleum extraction agreement

The government and KrisEnergy, a Singapore-listed oil and gas firm, are set
to sign a petroleum agreement this month to pave the way for the company to
start the groundwork for the extraction of oil from Bloc A, which is
expected to start in 2019, according to a senior official.

Ministry of Mines and Energy secretary of state Meng Saktheara told Khmer
Times yesterday that both sides had spent a long time making their revisions
before the agreement.

"We plan to sign the petroleum agreement with them very soon within this
month because we already compromised on all terms and changes stipulated in
the revised agreement," said Mr. Saktheara.

He explained that the reason the revisions were time consuming was because
there were a lot of issues in the new document.

Mr Saktheara said the issues included technical issues on exploration and
production, concessional agreements, benefit-sharing, as well as addressing
questions on the role of the government as the regulator and also a
beneficiary in the exploration.

"Now that we agreed on how to overcome all the changes, we have to spend
some time working together," he said.

"This will pave a new way for our oil extraction from Bloc A which has been
delayed since 2012 because we were not ready. So once the agreement is done,
it is expected to take about 25 months for the company to start its
construction work.

"We do expect to extract the oil in 2019 or early 2020," he added.

Tanya Pang, vice-president of investor relations and corporate
communications at KrisEnergy, also confirmed the compromise and revisions to
the agreement.

"The documentation is ready to sign and we are awaiting confirmation from
the various government departments," she said.

Kelvin Tang, the president of KrisEnergy Cambodia, told Khmer Times in April
that since becoming an operator in late 2014, the company has worked with
the government to finalise all the terms of the revised production sharing
contract.

He said that many government departments, including the Ministry of Mines
and Energy and the Ministry of Economy and Finance, were involved because
the agreements cover fiscal issues, government participation and operational
terms.

"As this is Cambodia's first oil development, many external parties have
been advising the government and we, as a responsible operator, have taken
time to make sure that all stakeholders are on a level playing field to
avoid any misunderstandings. We appreciate that the Apsara oil development
will be keenly watched," Mr Tang said.

Last November, KrisEnergy announced the completion of buying a 42.75 percent
working interest in the Block A offshore energy concession, which made them
a majority owner in the project, with overwhelming control of 95 percent of
the stakes.

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Link to Original Article:
http://www.khmertimeskh.com/5077640/krisenergy-set-sign-petroleum-extraction
-agreement/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com