Singapore-based upstream oil and gas company KrisEnergy has extended its revolving credit facility (RCF) to June 2020.
The RCF was initially signed in March 2016 at US$111mn, with the plan to reduce its size to US$55mn by July of the same year.
It was subsequently restructured: KrisEnergy ditched ANZ, Commonwealth Bank of Australia and HSBC in July 2016, extending the RCF by a year and transferring it to the books of a single bank, DBS.
Now, the facility has been renewed for a further two years, expiring in June 2020. A KrisEnergy spokesperson tells GTR that the facility currently sits at US$148.3mn, but that it has the capacity to be extended up to US$200mn. DBS remains the sole bank on the deal.
The company will be using the funds to develop its assets in the Gulf of Thailand and in Bangladesh and Indonesia. These assets have also been used to secure the finance.
The company’s Apsara oil field in the Cambodian Gulf of Thailand is the first hydrocarbon development project in Cambodia. KrisEnergy expects to move into oil production on this asset in 2019. The first phase of the development will install an unmanned wellhead platform, producing to a moored production barge. This will have a capacity of 30,000 barrels of oil per day, which will be transferred by pipeline to a permanent floating storage and offloading vessel.
Chief financial officer for KrisEnergy, Kiran Raj, says that the company is pleased to have extended the facility in an “uncertain” macroeconomic environment.
“We are very pleased to have extended our facility with no change to terms at a time when we are embarking on critical development projects to enhance the company’s future growth potential. I would like to thank DBS for its continued support since 2016. We also continue to evaluate a range of options in connection with the company’s capital structure with a view to strengthen our balance sheet as we progress our developments in the Gulf of Thailand,” Raj says.