Case Study: KrisEnergy Cambodia

Exploration activities in Cambodia started in early 2000 when Cambodia awarded six offshore blocks (A to F) for exploration to foreign firms. Block A covers an area of 3,083 square km over the Khmer Basin offshore Cambodia in water depths of 50 metres to 80 metres. It is located to the east of the Pattani Trough the most prolific hydrocarbon producing basin in Thai waters. Seven prospective geological trends have been identified in Cambodia Block A as a result of 3D seismic interpretation and exploration drilling. The Apsara oil field was first discovered by Chevron in 2004. In 2014, operator Chevron divested its working interest and operatorship of Block A to KrisEnergy. In 2016, KrisEnergy increased its working interest with the acquisition of the stakes of two other partner companies – MOECO Cambodia Co. Ltd. and GS Energy Corp. In 2017, KrisEnergy formally signed the petroleum agreement with the Government of Cambodia. In December 2020, KrisEnergy announced the milestone achievement of first oil production.

Apart from the UNESCO World Heritage Site ‘Angkor Wat’, the Kingdom of Cambodia is quickly gaining a reputation as one of the fastest growing economies in Asia, especially with the flourish in its textile and garment industry. It is no longer a surprise to see ‘Made in Cambodia’ instead of ‘Made in China’ on the label of major sportwear and clothing brands. While much attention has been given to Cambodia’s growing textile and garment industry, the potential of its oil resources is being tested with the initial development of the Apsara oil field in Block A, which is located in the Cambodian maritime waters of the Gulf of Thailand. 

At Cambodia’s maiden oil development, there was little by way of official guidelines for oil spill response and preparedness. With its expertise in the field and extensive contacts in the region, the OSRL project team guided KrisEnergy to navigate through this unchartered territory. OSRL provided information and advised on international best practice and mechanisms used by other governments in the region. With these preparations, KrisEnergy was able to discuss with the Cambodian authorities and establish agreed key process flows in oil spill response and preparedness. After a lengthy process, KrisEnergy was able to demonstrate to the authorities that sufficient planning and preparation was in place for oil spill preparedness. The final version of the OSCP was handed to KrisEnergy in August 2020. Hinna Ijaz, Coporate EHSS Manager provided excellent post-delivery feedback when asked what she liked most about working with OSRL.

Another notable aspect of the project was the absence of a Tier 2 provider in country. Although KrisEnergy planned to utilise its existing contractor in Thailand, there were many logistical and legislative challenges. To resolve these issues, KrisEnergy was able to leverage on OSRL’s unique edge as an oil spill solution provider by hiring additional equipment from OSRL. This enabled KrisEnergy to build an ‘enlarged Tier 1’ stockpile to form the basis of a Tier 2 provider should more industry peers operate in the sector in the future. It is ‘one small step for the company, one giant leap for industry’. OSRL, as an industry funded organisation, is honoured to be part of this significant milestone for the oil & gas industry in Cambodia.