The Singaporean oil company KrisEnergy reduced its working interest in the Block A Aceh offshore Indonesia to 15%. The operator of the block PT Medco E&P Malaka acquired the 26.67% from the share of Singaporean oil company and increased its holding to 85%. The transaction will be finance toward funding of the KrisEnergy’s share of the capital expenditure for the Block A Aceh gas development. The decision is part of the company’s revised expenditures plan, which aims to reduce future capital outcomes while maintaining exposure in Indonesia. The transaction is pending approvals from the Government of Indonesia and the Government of Aceh.
“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”, said the CEO of KrisEnergy, Jeffrey Macdonald. “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”, added he.
KrisEnergy is an independent upstream company focused on the exploration, development and production of oil and gas in the basins of Southeast Asia. The company’s target focus area stretches from the Surma Basin in Bangladesh in the west to the Papuan Basin in the east, and from offshore southern China in the north to Indonesia in the south.