Oil and gas explorer KrisEnergy on Friday said it made a final investment decision to proceed with the first phase of development for the Apsara oil field in Cambodia.
KrisEnergy, the operator of the Cambodia Block A since 2014, plans to develop the Apsara area, where there is potential for oil and gas to be trapped.
Cambodia Block A, which covers 3,083 square kilometers over the Khmer Basin in the Gulf of Thailand.
The individual oil accumulations in Cambodia Block A are small in size and spread over a large geographic area, requiring significant funds and time to fully develop, the company said in a statement.
Also the reservoir production performance in the Khmer Basin has yet to be proven.
"For these reasons, among others, there is some uncertainty regarding long-term production rates, reserves and commercial viability and therefore a phased development approach has been prudently adopted," the company said.
KrisEnergy last month said preliminary estimates show the first platform A to commence at a gross production rate of approximately 8,000 barrels of oil per day.
KrisEnergy is the operator of Cambodia Block A and holds 95 percent stake while the rest is held by the Cambodian government.
Shares in KrisEnergy rose 0.9 percent to S$0.11 on the Singapore Exchange.