Page 7 - AsianOil Week 46

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In tackling the oil spill, the company installed five high-speed water skimmers to remove the oil from the sea’s surface. The company installed more than 8.5km of oil booms to contain the oil spill.
Pertamina said it stopped the leak on Sep- tember 23 by connecting a relief well to contain it. The well was supposed to have been perma- nently plugged by October 1. The company added that it had recovered more than 42,000
barrels of oil since the leak began, but warned that clean-up of nearby beaches would last until at least March 2020.
Pertamina has pledged to compensate resi- dents affected by the spill, which are mostly fish- ermen. The company said it had distributed 30% of the its compensation budget as of the end of September. The compensation does not prevent those affected from suing the developer.™
KrisEnergy sells stake in Indonesian block to BP
FINANCE & INVESTMENT
SINGAPOREAN developer KrisEnergy has agreed to sell its 30% stake in the Andaman II production-sharing contract (PSC) offshore Indonesia to super-major BP.
The company said on November 19 that it had entered into a conditional sale and purchase agreement (SPA) with BP for the stake. It added that the deal was subject to all necessary approv- als, including from the Indonesia government.
KrisEnergy added that the decision to sell the block had come after taking into consideration future exploration costs and risks connected with the deepwater block.
Premier Oil operates Andaman II with a 40% stake, which covers 7,400 square km of the under- explored but proven North Sumatra Basin offshore
Aceh Province, while Mubadala Petroleum owns the remaining 30%. The partners won the licence in the 2017 Indonesian Licence Round.
KrisEnergy first announced its plan to sell the stake on October 29, exactly a week after it revealed that it would default on paying redemption amounts for its notes in order to conserve funding. The company sought and received a three-month court protection order against its creditors in Sin- gapore in September.
At the time, KrisEnergy said: “As part of the restructuring process, the company is working closely with its advisors to conserve all available cash to meet [its] funding requirements during the restructuring period to protect the interest of all stakeholders while a holistic and equitable restructuring proposal is worked on.”
The company’s total debt stood at S$558.8mn ($410.5mn) as at June 30.
When the company first announced that it had received a binding letter of offer for the non-operated interest, it refused to reveal the suitor’s identity. Noting simply that it had been approached by an international oil major, Kris- Energy said the offer was still subject to due dili- gence by the acquiring party.
In its most recent statement, the Singaporean developer said the company’s board believed allocating KrisEnergy’s limited capital to fund near-term developments was “more prudent”.™
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