Oil price crash: KrisEnergy suspends production at Wassana oil field

4 June 2020 (Last Updated June 4th, 2020 12:01)

Singapore-based oil and gas company KrisEnergy has decided to suspend production at the Wassana oil field indefinitely as a result of the recent oil price crash.

Oil price crash: KrisEnergy suspends production at Wassana oil field
As a result of this suspension, KrisEnergy will trim its workforce in Thailand by around 25%. Credit: D Thory from Pixabay.

Singapore-based oil and gas company KrisEnergy has decided to suspend production at the Wassana oil field indefinitely as a result of the recent oil price crash.

In the business update, the company announced the move in view of recent uncertainties ahead, as Covid-19 pandemic continues to grapple the world.

The KrisEnergy-operated Wassana oil field is located in the Gulf of Thailand G10/48 licence. KrisEnergy holds an effective 89% working interest in the G10/48 concession while Palang Sophon Offshore owns the remaining stake.

The company has also informed the Thailand authorities about the suspension.

As a result of this suspension, the Singapore-based company will also cut its workforce in the country by around 25%.

However, operations at KrisEnergy’s remaining producing assets will continue as usual.

In the first quarter of this year, gross production at Wassana oil field averaged 3,605 barrels of oil per day (bopd).

The Wassana field became onstream in August 2015. The offshore infrastructure at the field includes a mobile offshore production unit (MOPU) and a floating storage and offloading (FSO) vessel.

KrisEnergy has terminated the agreements with respect to the FSO, as a result of the suspension. It is also engaged in a discussion to warm-stack the MOPU with minimal crew and support from the Songkhla shorebase.

Overall, the company holds interests in 11 licences across Bangladesh, Cambodia, Indonesia, Thailand and Vietnam.

In April, KrisEnergy completed the sale of its 30% non-operated working interest in an Indonesian block.