Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia hoping to produce oil this year, despite global slump

Cambodia hoping to produce oil this year, despite global slump

Cambodia hoping to produce oil this year, despite global slump

As the global price of oil craters amid the Covid-19 pandemic, Singapore-based KrisEnergy Ltd remains on track to extract the first drop of oil in the first half of this year, said a Ministry of Mines and Energy senior official.

KrisEnergy is currently developing the Apsara oilfield in Cambodia’s offshore Block A, which it expects to reach a peak rate of 7,500 barrels of oil per day.

Speaking at a press conference titled Progress and Implementation plan of Ministry of Mines and Energy on Tuesday, the ministry’s General Department of Petroleum director-general Cheap Sour said the ministry has not yet offered guidelines to the company about the outbreak’s potential impact on its operation.

“We will have a discussion with the company about studying how the oil field development project in Block A will be impacted by the outbreak.

“The recent drop in oil price will probably lead to a loss of confidence for financiers investing their money in the oil sector,” said Sour.

He said the ministry has been working hard to attract investors to Cambodia’s oil sector. “We will strive to attract investors who want to explore for oil and continue to push for oil production by 2020.”

US crude benchmark West Texas Intermediate (WTI) briefly plummeted nearly 20 per cent to below $14.50 on Monday – its lowest since 1999 – as stockpiles continue to accumulate as a result of demand drying up amid the outbreak, reported AFP.

Sour said Cambodia has divided domestic kerosene exploration into six offshore and 19 onshore blocks.

In December, the ministry granted Chinese-owned Cambodian Resources Energy Development Co Ltd a three-year exploration licence in the Gulf of Thailand’s Block D, off the coast of Cambodia.

The company is scheduled to begin exploration of Block D, which covers 5,500sq km, this year.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Cambodia's Bokator now officially in World Heritage List

    UNESCO has officially inscribed Cambodia’s “Kun Lbokator”, commonly known as Bokator, on the World Heritage List, according to Minister of Culture and Fine Arts Phoeurng Sackona in her brief report to Prime Minister Hun Sen on the night of November 29. Her report, which was

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Sub-Decree approves $30M for mine clearance

    The Cambodian government established the ‘Mine-Free Cambodia 2025 Foundation’, and released an initial budget of $30 million. Based on the progress of the foundation in 2023, 2024 and 2025, more funds will be added from the national budget and other sources. In a sub-decree signed by Prime Minister Hun Sen

  • Two senior GDP officials defect to CPP

    Two senior officials of the Grassroots Democratic Party (GDP) have asked to join the Cambodian People’s Party (CPP), after apparently failing to forge a political alliance in the run-up to the 2023 general election. Yang Saing Koma, chairman of the GDP board, and Lek Sothear,

  • 11th Chaktomuk Short Film Festival draws to close

    Cambodia's 11th Chaktomuk Short Film Festival wrapped up successfully on November 28 after a four-day run, with the film “Voice of the Night” awarded top prize for 2022. Sum Sithen, the organiser of the short film festival, told The Post that the number of attendees to the