Phnom Penh (FN), Jun. 9 – Meng Saktheara, Secretary of State of the Ministry of Mines and Energy, wrote on his Facebook page on Wednesday explaining the case of KrisEnergy and the procedures for the resume of Block A oil agreement between the company and the Royal Government of Cambodia.

Singapore-based KrisEnergy already filed for bankruptcy. The company’s struggles with the repayment of hundreds of millions of dollars to banks and foreign creditors affected the operations of Block A offshore Apsara oil field in Cambodia.

Meng Saktheara said KrisEnergy had put Cambodian oil operations on Block A in jeopardy and some major plans on hold.

Following the court proceedings, KrisEnergy will be liquidated and the creditors will be able to manage all of KrisEnergy's existing assets, including its subsidiary KrisEnergy Cambodia, and the Block A oil concession rights in Cambodia. At that time, creditors can continue to manage or find partners to manage those assets based on the oil agreement and Cambodian laws regarding the case of oil blocks in Cambodia.

The creditors will have to discuss with the Cambodian government to reach consensus on how to continue to implement the Block A oil project in the future.

The current production, consists of five wells, covers just a small production area of the Block A. The five-well area is about 110 square kilometers, while the entire Block A has a total area of about 3,000 square kilometers.