KrisEnergy agrees to yet another extension under Vietnam farm-out

Singapore’s oil and gas company KrisEnergy has entered into a third extension of long stop date under a farm-out agreement for Block 115/09 offshore Vietnam.

KrisEnergy's assets, including Block 115/09 offshore Vietnam
KrisEnergy’s assets, including Block 115/09 offshore Vietnam. Source: KrisEnergy

KrisEnergy entered into the farm-out agreement with an unnamed “major international oil and gas company” for the transfer of its entire 100 per cent working interest in the Block 115/09 back in February 2020.

The agreement was made for a nominal cash consideration.

The cash consideration given took into account that the transfer of the exploration block reduces the company’s liabilities and mandatory work commitments comprising a 3D seismic acquisition program of at least 850 square kilometres along with the processing of the data and the drilling of one exploration well.

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The initial long stop date for the farm-out agreement was 30 June 2020.

Two extensions later, KrisEnergy said on Wednesday that the company has now entered into the third extension under the farm-out agreement.

KrisEnergy emphasized that while parties are actively working towards the fulfilment of conditions precedents under the farm-out agreement, they have mutually agreed in writing to extend the long stop date to 31 March 2021, or such later date as may be agreed in writing between parties.

Block 115/09 covers an area of 7,382 square kilometres in the southern Song Hong Basin where water depths range mainly between 60 meters and 200 meters.

KrisEnergy became the operator of the block in March 2014.