Singaporean-based gas firm KrisEnergy, which last week acquired Chevron’s interest in Cambodia’s offshore oil block, announced Monday it is looking to raise $400 million through a debt issuance.
KrisEnergy plans to use the money raised from its sale of medium-term notes on various ventures, including the Block A oil reserves, which the company gained controlling interest of after buying out Chevron’s 30 percent share.
The company has appointed HSBC and Standard Chartered Bank as joint underwriters of the debt, which will be “marketed and sold to institutional and/or sophisticated investors,” the company said in a statement.
“The net proceeds arising from the issue of Notes…will be used for planned capital expenditures to be incurred in the near term in connection with the development assets of the Company and its subsidiaries, which will primarily include…Cambodia Block A,” the company says.
However, the amount that will be portioned for the 4,709-sq-km area, along with an extraction date, will depend on talks with the government on a production permit application—a hurdle that led to delays for Chevron, which ultimately failed to extract any oil despite millions in investment.
“Given that our transaction with Chevron is not yet finalized, we are in the preliminary stage of discussions with the government and partners. Therefore we are not in a position to detail capital expenditures,” Tanya Pang, head of investor relation at KrisEnergy, said via email.
Once extraction peaks, KrisEnergy predicts it will be able to pump 10,000 barrels a day out of the oil reserves off the coast of Sihanoukville.
“Our plan would be to install the first platform and gauge reservoir performance before committing to additional platforms and facilities,” said Richard Lorentz, director of business development for KrisEnergy, in an email last week.
In its financial report for the first half of the year released Thursday, the firm reported revenue increased 18.2 percent year-on-year to $43.5 million.
