Cambodia: Gov't Announces First Oil Production to Start in 2019

Cambodia: Gov't Announces First Oil Production to Start in 2019

Cambodia has signed an oil production agreement with Singapore-based
KrisEnergy Group, paving the way for the long-awaited development of the
country's Block A oil field.

The signing came three years after KrisEnergy bought up the Chevron
company's shares in the field.

Kalvin Tang, COE of KrisEnergy, said the company would deploy equipment and
technical staff to develop the oil field within two years.

"Shortly after signing, we will declare [a] final investment decision and
proceed to deliver [the] first oil in Cambodia within 24 months, so that
will be sometime in late 2019. This is a major step," he said.

He added that KrisEnergy had pledged to operate with transparency. "When
there are changes to our businesses, our condition, or shareholders, we will
report [them] immediately."

Tang told reporters that the company could not provide details about capital
investment as it was continuing to seek further investors through an open
bidding process.

KrisEnergy also offered to assist the government in drawing up
anti-corruption safeguards for the oil industry.

Chevron decided to pull out of Cambodia after 12 years of prospecting,
selling its 30 percent stake in the oil field to KrisEnergy in 2014 for $65
million. The other stakeholders are Moeco Cambodia and GS Energy
Corporation.

Suy Sem, mines and energy minister, said there were an estimated 30 million
barrels of oil in Block A and Block B, adding that the signing of the
agreement with KrisEnergy was a "fabulous achievement" that would bolster
Cambodia's economy.

Kim Natacha, a Cambodian extractive industries expert, said the advent of
oil production in Cambodia would create jobs and increase trade, adding that
the government should create a forum of civil society groups that could
monitor the industry to ensure transparency.

"Some civil society groups have taken part in this mechanism, which is
called Extractive Industry Governance Forum (EIGF), and this forum will be
open to the participation of civil society organizations that registered,"
she said.

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
https://www.voacambodia.com/a/government-announces-first-oil-production-to-s
tart-in-2019/4010021.html

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com