KrisEnergy extends Vietnam asset farm-out once more

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

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 between the two companies had an initial long stop date for the farm-out agreement of 30 June 2020.

The previous extension was announced on 16 December 2020, while KrisEnergy announced on 23 March that the new extension, the fourth in a row, extended the long stop date to 30 June 2021 or such a later date as may be agreed in writing between parties.

KrisEnergy stated that while parties were actively working towards the fulfilment of conditions precedents under the farm-out agreement.

Block 115/09 covers an area of 7,382 square kilometres in the southern Song Hong Basin where water depths range mainly between 60 metres and 200 metres. KrisEnergy became the operator of the block in March 2014.

Source: Offshore Energy Today