Cambodia Starts First Crude Oil Production

Cambodia Starts First Crude Oil Production

Cambodian Prime Minister Hun Sen said that the country's long-awaited first commercial extraction of oil has finally begun.

Speaking nationwide on state television, Hun Sen said the first drop of oil was extracted on Monday by KrisEnergy, a Singapore-based oil and gas company, from a well in offshore Block A in the Gulf of Thailand, west of the coastal Cambodian province of Preah Sihanouk.

"The start of production is a blessing for our Cambodia," Hun Sen said. "It is a first important step for Cambodia to boost its capacity to reach its goal as an oil and gas production country."

"COVID-19 disturbed but could not destroy our attempt to produce oil," he added.

The 3,000-square-kilometer (1,158-square-mile) Block A concession is estimated to hold as much as 30 million barrels of oil reserves. It was discovered in 2004, and initially held by oil giant Chevron, which sold its stake to KrisEnergy in 2014.

KrisEnergy, which was granted production rights by the government in 2017, holds a 95% share in the project, and the Cambodian government the remaining 5%.

Production began from a single development well in the Apsara field, and according to an announcement from the oil company, is expected to reach a peak rate of approximately 7,500 barrels of oil per day once the drilling program is completed and four more development wells come online in mid-February 2021.

"Our task now is to complete drilling of the four remaining wells, stabilize production and monitor performance so that we may assess the best path forward to optimize Cambodia's oil production and the value of the asset in the years ahead," the announcement quoted Kelvin Tang, head of KrisEnergy's Cambodian operations, as saying.

In the past decade, several companies from Australia, China, France, Indonesia, Malaysia, Singapore and South Korea also have expressed interest in exploring Cambodian waters for oil.

Critics have expressed concern that oil income could exacerbate Cambodia's already rampant corruption if the government fails to develop a proper legal environment to manage the expected windfall.

Akhyari Hananto

I began my career in the banking industry in 1997, and stayed approx 6 years in it. This industry boost his knowledge about the economic condition in Indonesia, both macro and micro, and how to More understand it. My banking career continued in Yogyakarta when I joined in a program funded by the Asian Development Bank (ADB),as the coordinator for a program aimed to help improve the quality of learning and teaching process in private universities in Yogyakarta. When the earthquake stroke Yogyakarta, I chose to join an international NGO working in the area of ?disaster response and management, which allows me to help rebuild the city, as well as other disaster-stricken area in Indonesia. I went on to become the coordinator for emergency response in the Asia Pacific region. Then I was assigned for 1 year in Cambodia, as a country coordinator mostly to deliver developmental programs (water and sanitation, education, livelihood). In 2009, he continued his career as a protocol and HR officer at the U.S. Consulate General in Surabaya, and two years later I joined the Political and Economic Section until now, where i have to deal with extensive range of people and government officials, as well as private and government institution troughout eastern Indonesia. I am the founder and Editor-in-Chief in Good News From Indonesia (GNFI), a growing and influential social media movement, and was selected as one of The Most Influential Netizen 2011 by The Marketeers magazine. I also wrote a book on "Fundamentals of Disaster Management in 2007"?, "Good News From Indonesia : Beragam Prestasi Anak Bangsa di dunia"? which was luanched in August 2013, and "Indonesia Bersyukur"? which is launched in Sept 2013. In 2014, 3 books were released in which i was one of the writer; "Indonesia Pelangi Dunia"?, "Indonesia The Untold Stories"? and "Growing! Meretas Jalan Kejayaan" I give lectures to students in lectures nationwide, sharing on full range of issues, from economy, to diplomacy Less
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