Singapore firm inks deal to run Cambodia’s first oil field
PHNOM PENH: Cambodia signed a deal with a Singaporean energy company to develop its first-ever oilfield, the latest move in the impoverished country’s muchdelayed plan to become an oilproducing nation.
KrisEnergy signed the agreement with the government in the capital Phnom Penh to develop an offshore field in the Gulf of Thailand which they hope will produce 8,000 barrels a day by 2020.
Energy Minister Suy Sem hailed the signing as a ‘historic event’ and said the nation would become an oil producer country in the future.
The Gulf of Thailand boasts significant oil deposits that have been exploited by Thai and Malaysian companies since the 1980s.
But Cambodia, one of Asia’s poorest nations, has been slow to get in on the act.
Chevron first found proven reserves in Cambodian waters in 2005.
The kingdom was soon feted as the region’s next potential petrostate. Its government estimates there are hundreds of millions of barrels of crude and vast reserves of natural gas in six blocks off the coast.
But production stalled as the government and Chevron failed to agree over revenue sharing, leading the US oil giant to abandon the project and sell its stake to KrisEnergy in 2014.
Under the deal KrisEnergy will start extraction on one section of a 3,000 square kilometre (1,158 sq mile) block known as the Apsara field to the southwest of Cambodia’s coast.
A single platform will be built, with plans for further platforms and the exploration of two more fields if the first becomes lucrative.
The Singaporean firm holds a 95 per cent stake in the first block and the Cambodian government the remainder.
Under the agreement KrisEnergy has 60 days to declare a final investment decision.