SINGAPORE (Aug 23): The Royal Government of Cambodia and KrisEnergy today jointly announced the signing of fiscal and technical agreements for the nation’s first oil field development in Cambodia Block A in the Gulf of Thailand.

Since 2014, KrisEnergy has been the operator of the Cambodia Block A. The group plans to develop the Apsara area, which is one of seven geological trends in the license where there is potential for oil and/or gas trapped.

According to the agreement, KrisEnergy has 60 days to finalise its decision and thereby formally launching the Apsara project, which is expected to take up to 24 months to produce first oil.

Under the formalised terms, KrisEnergy will hold 95% of participating interest in Cambodia Block A, while the Royal Government of Cambodia will hold 5%.

Meanwhile, this agreement triggered a second relinquishment phase of the concession. About 25% of the Cambodia Block A area (1,626 sq km) is returned to authorities, leaving 3,083 sq km under the operatorship of KrisEnergy.

Kelvin Tang, KrisEnergy’s Chief Operating Officer and President of the company’s Cambodian activities says, “Apsara marks only the first phase of the development of Cambodia Block A, there remains further potential in other geological trends within the contract area for future investigation.”

Shares in KrisEnergy are trading 1 cent higher at 12 cents as at 12.21pm.