Logo of Phnom Penh Post newspaper Phnom Penh Post - Canadian firm granted oil, gas exploration, production licence

Canadian firm granted oil, gas exploration, production licence

Content image - Phnom Penh Post
A fuel attendant tops up a customer’s motorcycle at a TELA filling station in northern Phnom Penh’s Russey Keo district on March 31. Hong Menea

Canadian firm granted oil, gas exploration, production licence

The government has given the nod to EnerCam Resources Co Ltd, a subsidiary of Toronto-listed Angkor Resources Corp, for oil and gas exploration, development and production on southwestern Cambodia’s roughly 7,300sq km onshore Block VIII in the Kampong-Som Basin, the parent company reported on October 3.

“Initial phases of exploration on Block VIII will include the acquisition of available seismic [data], which will then have comprehensive analysis completed. Preliminary magnetics on the targeted areas will also be part of the first phase work plan,” according to a press release issued by Angkor Resources, which is based in Sexsmith, a town in western Canada’s Alberta province.

“The permitting is for an initial three-year exploration term and two further renewal terms of two years each. Development and production terms are for 25 years with additional renewals.

“Exploration will be undertaken outside of park areas, part of EnerCam’s ESG [environmental, social and governance] mandate so the company assists in protecting Cardamon Mountains National Park and Preah Monivong and Kirirom National Parks,” it added.

EnerCam president Mike Weeks voiced optimism that the company’s operations in the licensed area would stimulate development of the Cambodian oil and gas industry.

“We are excited about moving oil and gas forward in Cambodia as we believe this is a monumental change for the entire country,” he said in the release.

“Having its own long-term source of energy for LNG [liquefied natural gas], for fuels and a whole variety of products currently imported into Cambodia will advance this country to a new level.

“It starts with exploration on Block VIII – we see gas shows, oil seeps, and other indications on the licence that point us in a potential direction for discovery,” Weeks added.

Ministry of Mines and Energy director-general for petroleum Cheap Sour could not be reached by The Post by press time. However, he underlined in a previous interview that, for the time being, attracting new investments to the mines and energy sector would be a top priority for his ministry.

He also explained that Cambodia has divided its territorial lands and waters into six offshore and 19 onshore blocks for oil and gas exploration.

Angkor Resources CEO Delayne Weeks added in the press release: “Until countries have accomplished sourcing sufficient renewable energy to meet global demand, cleaner and greener use of hydrocarbons plays a vital role in every country’s energy balance.

“Cambodia needs its own source of energy, and we look forward to actively exploring and producing energy for Cambodia, all the while establishing strong ESG principles in a new sector of the country.

“This is also a huge opportunity for human resource development with a significant new industry sector for Cambodia. Implementing best practices for energy creation with hydrocarbons brings positive development and a template for the entire country.

“We can use what we have learned elsewhere to minimise the carbon footprint and maximise the benefits to the economy and the population,” she added.

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,

  • Cambodia's poverty cut in half from 2009 to 2019: World Bank report

    A report published by the World Bank on November 28 states that Cambodia’s national poverty rate fell by almost half between 2009 and 2019, but the Covid-19 pandemic recently reversed some of the poverty reduction progress. Cambodia’s poverty rate dropped from 33.8 to 17.8 per cent over the 10