KrisEnergy has entered into a conditional sale and purchase agreement with BP for a 30% non-operated interest in the Andaman II production sharing contract (PSC) in the Malacca Strait of Indonesia. The binding letter was accepted after taking into consideration the future exploration cost and risks associated with deepwater activities. The company plans to focus spending existing producing assets in Bangladesh and the Gulf of Thailand and the development of the Apsara field in Cambodia.
The agreement is subject to approval from the government of Indonesia for the assignment of the working interest and the completion of due diligence by the purchaser. The transaction is planned to close before Mar 2020. The Andaman II PSC is an exploration block over the North Sumatra Basin covering an area of 7,400 sq km.