SINGAPORE Aug 11 Singapore-based upstream oil
and gas firm KrisEnergy Ltd said on Monday it has
agreed a $65 million deal to buy out Chevron Corp's
interest in an offshore oil block in Cambodia and take over as
the block's operator.
KrisEnergy said in a statement it plans to acquire the
entire issued share capital of Chevron Overseas Petroleum
(Cambodia) Ltd, a subsidiary of the global oil company.
The deal is subject to regulatory approvals. Other partners
in the joint venture, MOECO Cambodia Co. Ltd and GS Energy
Corporation, have approved the transaction, KrisEnergy said.
Once the deal is completed, KrisEnergy will increase its
stake in Cambodia Block A from 25 percent to 52.25 percent.
The block is located in the Gulf of Thailand, where Chevron
struck oil a decade ago - the first significant oil discovery in
But the launch of production has been delayed for years, as
Chevron, the operator of the block, failed to reach an agreement
with the government on a final investment decision.
KrisEnergy said it intends to work with the Cambodian
authorities to agree the terms and conditions of the production
licence before declaring a final investment decision.
The best estimate contingent resources, or potentially
recoverable quantity of petroleum, attributable to KrisEnergy's
enlarged stake in the project, will be about 5.4 million barrels
of oil equivalent as of the end of 2013, KrisEnergy said.
KrisEnergy shares jumped 2.7 percent to S$0.75, the largest
daily rise in over a month, but they have fallen more than 40
percent so far this year.
(Reporting by Rujun Shen; Editing by Kenneth Maxwell)