Cambodia’s Oil Extraction Operator KrisEnergy Unable to Pay Debts, Requests Liquidation

• 8 June 2021
• Local News
• 6196 Views

Cambodia’s oil extraction operator KrisEnergy has announced that it is unable to pay its debts based on actual and/or contingent liabilities and will soon proceed to liquidation, according to the firm’s press release on 4 June.

KrisEnergy on the same date already submitted a winding-up petition to the Grand Court of the Cayman Islands. Meanwhile, the hearing date for the Winding Up Petition will be fixed.

The decision came after the firm took into consideration, among others, the following factors:
(a) the Company’s liabilities which exceed the value of the Company’s assets;
(b) the significantly lower ultimate recovery and cashflow from the Apsara Mini Phase 1A
development resulting in the Company’s restructuring exercise being no longer viable;
(c) the lack of an acceptable alternative restructuring option; and
(d) the lack of near-term infusion of fresh funds available to the Company.

Regarding this matter, the firm announced in April that oil production from five wells in Cambodia’s Apsara Field was lower than expected, providing less revenue and affecting the firm’s restructuring plan. (Read more)

As of March 30, the gross production rate was only 2,493 barrels per day (bopd), and the highest production rate achieved was 3,534 bopd on 27 March 2021, which is far lower than the forecast of 7,500 bopd.

Besides, before the first oil field started production on 28 December 2020, KrisEnergy had been through many financial and technical struggles causing plenty of delays in production timelines. (Read more and more)

 

• Economy and Finance
• Energy and Environment