KrisEnergy, the Singaporean company developing Apsara oilfield’s Block A, will receive three months of court protection from legal action to allow it to restructure its $476.8-million debt.
At a hearing on Monday, Singapore’s High Court granted the moratorium to Nov 14, which is less than the six-month extension KrisEnergy had sought.
KrisEnergy produces oil and gas in Southeast Asia, and is now developing Block A in the Khmer Basin’s Apsara oilfield.
Keppel Corporation, a creditor and shareholder of KrisEnergy, had backed the application and the firm’s management in formulating a restructuring plan, according to a report in The Straits Times yesterday.
Spokesperson of KrisEnergy, told Khmer Times yesterday that the moratorium gives the company “breathing space” and protects the company from enforcement, allowing it to conserve cash and focus on income-generating operations and value-enhancing developments like Cambodia’s Block A.
“The Company is currently in moratorium in order to reorganise its capital structure and improve its financial condition.
“The Board and management of KrisEnergy, together with its advisors, are focused on progressing the restructuring as far as possible before the next court hearing in mid-November 2019,” spokesperson said.
Regarding the implications on its Apsara oilfield development, spokesperson said, “The Board and management of KrisEnergy are committed to Cambodia Block A and the Apsara oil development, which is considered to be a jewel in the KrisEnergy portfolio.
“As a key asset, the company is continuing to progress the development of Cambodia Block A even during its restructuring,” spokesperson said, noting that if more capital is required for Block A, it will work with its stakeholders “on all options, which may include selling some of KrisEnergy’s other assets.”
Contacted by Khmer Times yesterday, Cheap Sour, director-general of the general department of petroleum, said the company already notified the ministry about the restructuring.
“I have been informed and the company has told me that their work in Cambodia will continue as planned,” Mr Sour said.
In July, KrisEnergy completed a 3D seismic survey in the Block A concession. According to the company, the data collected from the survey will significantly facilitate the development of the area.
“It will provide valuable information of the subsurface over two distinct areas – partially the Apsara development area and also a large portion of Block A where there has been very little data so far and has good potential for further hydrocarbon discoveries,” spokesperson told Khmer Times in July.