Cambodia’s Block A offshore Apsara oil field is in crisis as Singapore-based KrisEnergy attempts to restructure nearly $500 million in debt after filing for bankruptcy in August.
Block A was supposed to produce Cambodia’s first crude oil next year but analysts are beginning to doubt the firm will reach its goal as it continually struggles with the repayment of hundreds of millions of dollars to banks and foreign creditors.
The firm is saddled with $476.8 million of debt and has already stopped principal loan and interest repayments since August.
“Cambodia’s plan to produce its first crude oil by 2020 appears to have hit a new snag after Singapore’s KrisEnergy filed for bankruptcy in August amid low oil prices and weak oil and gas production,” stated a report by Fitch Solutions Macro Research.
KrisEnergy requested six months of court protection from banks and creditors but was denied at a hearing Monday.
The Singaporean court denied the six month request and ordered the firm to restructure its debt in three months time.