Singapore-based oil and gas company KrisEnergy has suspended production from its Wassana oil field in the Gulf of Thailand citing Covid-19 pandemic and low oil prices. It will cut its Thailand workforce by 25 percent, too.
"In view of the many uncertainties ahead – the duration of the COVID-19 pandemic, speed of global economic regeneration and recovery in petroleum demand, and the magnitude and sustainability of any upturn in oil prices – production at the KrisEnergy-operated Wassana oil field has been suspended until further notice," KrisEnergy said Wednesday.
Gross production at Wassana oil field averaged 3,605 barrels of oil per day (“bopd”) in the first quarter of 2020 and the Company’s working interest production was 3,208 bopd. KrisEnergy holds an effective 89.0% working interest in the G10/48 concession and Palang Sophon Offshore holds an
effective 11% working interest.
The Wassana field in the G10/48 concession in the Gulf of Thailand came onstream in August 2015 and comprises a mobile offshore production unit (“MOPU”) and a floating storage and offloading (“FSO”) vessel.
KrisEnergy said Wednesday it had terminated the bareboat charter with Rubicon for the FSO vessel, and that it would move the MOPU from the offshore location.
"The company is in discussions regarding the warm-stacking of the MOPU with a skeleton crew and supported from the Songkhla shore base. Due to the suspension of Wassana production, the company will reduce its workforce in Thailand by approximately 25.0%," KrisEnergy said.
Operations at the Group’s remaining producing assets – the B8/32 oil and gas fields in the Gulf of Thailand and the Bangora gas field in Block 9, onshore Bangladesh – continue as usual, it added.