KrisEnergy farms out Block 115/09 offshore Vietnam

1 April 2021 (Last Updated April 1st, 2021 11:49)

KrisEnergy, through its Vietnamese subsidiary, has divested its 100% interest in the exploration block 115/09 located offshore Vietnam to an undisclosed international oil and gas company.

KrisEnergy farms out Block 115/09 offshore Vietnam
The Apsara oil field is located in Block A offshore Cambodia. Credit: Elise Aldram / Pixabay.

KrisEnergy, through its Vietnamese subsidiary, has divested its 100% interest in the exploration block 115/09 located offshore Vietnam to an undisclosed international oil and gas company.

The financial terms of the deal, which was signed in February, have not been made public.

The Singapore-based oil and gas company said it agreed on the transfer of the exploration block, considering the reduction in its liabilities and mandatory work commitments, including a 3D seismic acquisition program for a minimum of 850km², processing of the data and the drilling of one exploration well.

Separately, KrisEnergy announced that production from the Apsara oil field in Block A offshore Cambodia has been below expectations and failed to meet the pre-development forecast of peak production of 7,500 barrels of oil per day (bpd).

Production from the Apsara oil field started from a single well, A-01D by 28 December and four additional wells commenced production since then.

KrisEnergy said it has developed the Apsara Mini Phase 1A as an initial small-scale project to observe and appraise reservoir performance in the previously unproduced Khmer Basin and help in determining the long-term potential of the Apsara area by collecting collect vital production and subsurface data.

As of 27 March, the Apsara field’s highest production rate achieved was 3,534bpd.

KrisEnergy said a press statement: “In line with lower production rates, preliminary observations also indicate that the ultimate recovery from the five development wells is likely to be significantly lower than pre-development expectations as the limited continuity of the reservoirs encountered will decrease the original oil-in-place (OOIP) estimates associated with the producing wells.”

As a result of the field’s underperformance, KrisEnergy’s restructuring efforts will be affected, the firm noted.

While the company will review all data to test its internal assessments, the Netherlands, Sewell & Associates (NSAI) will undertake ultimate recovery assessment from the current five wells.