The Cambodian government and KrisEnergy have signed fiscal and technical agreements for the nation’s first oil field development. The agreement between Cambodia and KrisEnergy covers 1,190 square miles of the Khmer basin in the Gulf of Thailand known as Block A, which is one of seven geological trends in the license, where there is potential for oil and/or gas to be discovered.
Oil will be produced from the Apsara field within the block and output is expected within 24 months of the official launch of the project.
Aun Pornmoniroth, Cambodia’s Finance Minister, said the area is estimated to yield more than 30 million barrels over a nine-year period.
KrisEnergy is looking for partners to invest in the project; Cambodia expects to receive around $500 million in fees, taxes and royalties over the project’s lifespan, according to Reuters. KrisEnergy will own a 95 percent interest in the field, while the Cambodian government will own the rest.