Photo: KrisEnergy

KrisEnergy completes Vietnam farm-out

After several delays, Singapore’s oil and gas company KrisEnergy has completed a farm-out agreement for its entire working interest in Block 115/09 located offshore Vietnam.

Block 115/09 off Vietnam - KrisEnergy
Block 115/09 off Vietnam; Source: KrisEnergy

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

The agreement was made for a nominal cash consideration and considered 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.

The farm-out agreement had an initial long stop date of 30 June 2020.

Four extensions of the long stop date later, KrisEnergy has now completed the farm-out agreement with the unnamed company.

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In an update on Wedensday, KrisEnergy said that the Vietnamese authorities have approved the transfer of 100 per cent working interest and operatorship of Block 115/09 and the transfer was completed on 31 March 2021.

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.