KrisEnergy on verge of collapse as Cambodia bet backfires

Singapore-listed KrisEnergy – widely seen as a zombie company - is finally on the verge of collapse after production from its Apsara oilfield offshore Cambodia failed to meet expectations. Significantly, it should come as no surprise that the frontier basin disappointed.

The company, majority owned by Singapore conglomerate Keppel Corporation, reported last week that output at its offshore Block A concession in Cambodia was less than half of the originally expected rate.

KrisEnergy conceded that the news created “material uncertainty” over whether the company, weighed down by debts of more than $500 million, can complete its planned restructuring.

KrisEnergy had been betting on oil production from its Cambodia development, which started up in late December 2020, to provide cashflow to keep the company operating.

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