BP BP Plc

   By Justina Lee 
 

KrisEnergy Ltd. (SK3.SG) signed a deal to sell its interest in an Indonesian offshore oil-gas project to energy giant BP PLC (BP.LN).

Singapore-based KrisEnergy said Tuesday that it would sell its 30% interest in the Andaman II project to BP Exploration Operating Co., a holding entity for BP's exploration and production subsidiaries.

KrisEnergy said the deal was a conditional sale and purchase agreement, subject to approval by the Indonesian government. It didn't specify a purchase price.

KrisEnergy, which announced the asset sale in late October without disclosing details of the buyer, said it expects the sale to help it allocate its capital to fund near-term development.

The news comes as cash-strapped KrisEnergy has been working on plans to restructure hundreds of millions of dollars in debt. The company said it intends to focus its financial resources on improving operations at fields in Bangladesh and the Gulf of Thailand while also developing Cambodia's first oil project.

Shares were halted from trade in August, when the company announced plans to seek temporary protection from creditors while it sought to restructure debt. Shares had fallen 59% in the year to that point.

Write to Justina Lee at justina.lee@wsj.com

(END) Dow Jones Newswires

November 18, 2019 23:58 ET (04:58 GMT)

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