KrisEnergy Says First Oil from Wassana, Nong Yao Fields Likely in 2H 2015

Singapore-listed KrisEnergy Ltd. reported that its development projects offshore Thailand are on track for first oil in the second half of this year, the company said in its release of financial results for the first quarter of 2015 (1Q 2015) Thursday.

The two Gulf of Thailand projects are the KrisEnergy-operated Wassana oil field in Block G10/48 and the Mubadala Petroleum-operated Nong Yao oil field in Block G11/48.

"We are fully focused on bringing on stream the Wassana oil field in the Gulf of Thailand where we are making good progress and have completed refurbishment of key equipment and are preparing for installation. The Nong Yao development is also pressing ahead and we remain on track for first oil,” KrisEnergy CEO Keith Cameron said in the press release.

On the Wassana project, the firm indicated that refurbishment of the MOPU (mobile offshore production unit) Ingenium and the Rubicon Vantage floating offloading and storage (FSO) vessel is completed and preparations are underway for installation at the field location ahead of development drilling.

Work is also progressing at the Nong Yao development, where construction of the production and processing facilities was completed in February and installation is underway.

Meanwhile, KrisEnergy posted a 46.2 percent decline in revenue to $11.4 million in 1Q 2015, compared to the previous year's $21.2 million due to a steep 50.7 percent fall in the average oil price realized by the company, which was $53.20 a barrel compared to $108.04 in the corresponding period in 2014. The firm's revenue was also driven lower following a 9 percent fall in gas price during this period.

KrisEnergy's oil and gas production decreased to 4.9 percent in 1Q 2015 to 7,699 barrels of oil equivalent per day (boepd), less than the 8,097 boepd produced a year ago.

“There is no doubt that these are challenging times for the upstream oil and gas sector. The crash in oil prices is reflected directly on the bottom line but gas prices in Asia have remained relatively resilient. This supports our strategy of a balance of oil and gas in the portfolio, which will be underpinned when two oil developments in Thailand begin production in the second half of the year. These fields will bring our oil/gas production ratio to around 50:50. It is essential that we continue to focus on cost reductions in this lower oil price environment," Cameron added.

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