Singapore’s KrisEnergy has entered into a farm-out agreement with a “major international oil and gas company” for the transfer of its entire 100 per cent working interest in the Block 115/09 production sharing contract offshore Vietnam for a nominal cash consideration.
KrisEnergy said on Friday that the sale was done by its wholly-owned subsidiary KrisEnergy Vietnam 115 Ltd.
The cash consideration given took into account that the transfer of the exploration block reduces the company’s liabilities and mandatory work commitments comprising a 3D seismic acquisition program of at least 850 square kilometres along with the processing of the data and the drilling of one exploration well.
The company added that it believed it was more prudent to allocate KrisEnergy’s limited 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.
Block 115/09 covers an area of 7,382 square kilometres in the southern Song Hong Basin where water depths range mainly between 60 meters and 200 meters. KrisEnergy became the operator of the block in March 2014 .
KrisEnergy added that further details of the transfer would be announced when necessary and that stakeholders and potential investors who were in doubt as to the action they should take should consult their stockbrokers, bank managers, solicitors, accountants, or other professional advisors.