KrisEnergy Ltd., an upstream oil and gas company based in Singapore, announces that it has accepted a binding letter of offer by a major international oil and gas player. The company plans to offer 30% non operated working interest in the Andaman II production sharing contract in the Malacca Strait.

Based on the written statement, the binding letter for the disposal was accepted after taking into consideration of the future exploration cost and risks associated with deepwater activities. The board believes it is more prudent to allocate the company’ limited capital to funding near-term development.

KrisEnergy expect, the completion transactions, including its terms is subject to inter alia obtaining all necessary approvals from the Indonesian government for the assignment of the working interest. Also the satisfactory completion of due diligence by the intended purchaser.

The Andaman II PSC is an exploration block over the North Sumatra Basin covering an area of 7,400 square kilometers (km). In 2012 – 2013, during a pre-PSC Joint Study Agreement period, 1,427 km of 2D seismic data was acquired over the company.