KrisEnergy Cuts Stake in Indonesian Gas Asset
Southeast Asia focused KrisEnergy has cut its stake in one of its Indonesian asset in line with its plan to reduce future capital expenditure.
The company has reduced its stake in Block A Aceh production sharing contract to 15%. Proceeds from the transaction will be applied towards funding KrisEnergy’s share of the capital expenditure for the Block A Aceh gas development. The operator of Block A Aceh, Medco E&P Malaka, has acquired 26.6666% of KrisEnergy’s working interest and increased its holding to 85%.
“This farm-out is in line with our recently announced revised business plan to reduce exposure to contract areas where we have a high working interest in order to mitigate risk and reduce future capital expenditure commitments given the continued volatility in oil and gas markets. However, we remain a partner in Block A Aceh and will benefit from long-term revenues and cash flow once the gas fields are developed and on stream,” Jeffrey S. MacDonald, KrisEnergy’s interim CEO, commented.
Block A Aceh covers 1,680 km2 and is located onshore Sumatra in the semi-autonomous region of Aceh. It contains several gas condensate discoveries including the Alur Rambong, Alur Siwah and Julu Rayeu fields, which were approved for development in 2007. A gas sales agreement was signed in January 2015 for a daily contracted quantity of 58bn Btu.
Shardul Sharma