JAKARTA (TheInsiderStories) – KrisEnergy Ltd., an upstream oil and gas company based in Singapore, announces that it has accepted a binding letter of offer by a major international oil and gas player, said the producer today (10/29). The company plans to offer 30 percent non operated working interest in the Andaman II production sharing contract in the Malacca Strait.

Based on the written statement, the binding letter for the disposal was accepted after taking into consideration of the future exploration cost and risks associated with deepwater activities. The board believes it is more prudent to allocate the company’ limited capital to funding near-term development.

KrisEnergy expect, the completion transactions, including its terms is subject to inter alia obtaining all necessary approvals from the Indonesian government for the assignment of the working interest. Also the satisfactory completion of due diligence by the intended purchaser.

The long stop date for the Disposal is March, 31, 2020. The terms of the deal set out in the letter of offer are subject to certain assumptions and the execution and delivery of a definitive sale and purchase agreement and the consideration for the Disposal will be payable only upon completion.

The disposal is in line with the Group assessment to focus its limited financial resources on optimizing operations at its existing producing assets in Bangladesh and the Gulf of Thailand and progressing the development of the Apsara oil field in Cambodia block A.

The Andaman II PSC is an exploration block over the North Sumatra Basin covering an area of 7,400 square kilometers (km). In 2012 – 2013, during a pre-PSC Joint Study Agreement period, 1,427 km of 2D seismic data was acquired over the company.

Following notification of award in January 2018, the Andaman II PSC was officially signed on April, 5, 2018 with KrisEnergy holding 30 percent, British’ Premier Oil Plc., 40 percent (operator) and Uni Emirate Arab’ Mubadala Petroleum 30 percent.

While, KrisEnergy is an independent upstream company focused on the production and development of oil and gas in the basins of Southeast Asia. The company established in 2009 with the goal to build a sustainable Asian oil company with a diverse multi-asset portfolio.

“Our target focus area stretches from the Surma Basin in Bangladesh in the west to the Papuan Basin in the east, and from offshore southern China in the north to Indonesia in the south,” said the producer.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com