Subscribe Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Chevron takes another step

Chevron takes another step

Chevron takes another step

Cheveron Cambodia President Steve Glick’s arrival in Phnom Penh this week has been touted as a sign of the firm’s commitment to its offshore Block A oil project.

The company is actively exploring offshore Block A, and plans to make a final investment decision on whether to proceed by the end of 2011, according to company officials.

“Chevron is committed to this project, and building our office strength here in the Kingdom is a clear indicator of that commitment,” Glick said in a speech on Wednesday.

Gerry Flattery, who previously oversaw the Block A project, was based in Thailand.

The firm has said it expects to receive a 30-year production permit in the second quarter of 2011. Government officials have set a deadline of December 12, 2012, to begin oil extraction in Cambodia.

Cambodian National Petroleum Authority Vice Chairman Ho Vichit said the authority welcomed Glick’s arrival.

“We are pleased to see this project move ahead with the commitment that Chevron and the Block A partners have demonstrated to oil and gas development in Cambodia,” he said in a speech on Wednesday.

Company spokesman Gareth Johnstone said Chevron has indicated it is keen to move the project forward, adding: “We want to make sure everything’s in place when we do that.”

He said that the design phase of the project was ongoing, but also highlighted challenges with producing oil from its Cambodian concession.

“Block A is a challenging development as the oil is located in dispersed, small pockets,” he said.

“Unlike other reservoirs around the world where there are large deposits of oil or gas – offshore Nigeria and offshore northwest Australia are examples – Block A will require multiple wells to extract the resource,” he said.

The company drilled three successful exploration wells in Block A last year, but Johnstone emphasised it was just one of a range of factors taken into consideration when reaching a final investment decision.

He also listed three principles that apply for the firm regardless as to where it operates. Chevron requires a transparent and consistent regulatory regime, contract sanctity and adherence to the rule of law, he said.

“Taking into account all these factors, we are saying: we expect to make a final investment decision this year,” he said.


  • Kak Channthy, Cambodian Space Project frontwoman, killed in crash at 38 [Updated]

    Updated 5:05pm, Tuesday, March 20, 2018 Kak Channthy, frontwoman of popular The Cambodian Space Project, was killed Tuesday morning in a traffic accident in Phnom Penh. She was 38. Channthy, the internationally recognised singer-songwriter also known as “Srey Thy”, was reportedly travelling in a tuk-tuk on the city's

  • Australians protest Asean summit visit by PM Hun Sen

    Hundreds of protesters gathered in Sydney’s Hyde Park on Friday to protest against Cambodian strongman Hun Sen, who claimed to have been gifted millions of dollars by the Australian government ahead of a special Asean summit this weekend. An estimated 300 protesters, the majority of

  • Peeling back layers of prehistory in Battambang

    When the man passed away, he had not yet reached 50. He belonged to a tribe that had settled near the Sangker River in Battambang province, likely cultivating the fields and raising animals. On the side, they hunted for boars, and even turtles, one of which

  • Phnom Penh smothered in smelly, dangerous haze as landfill fire continues burning

    A putrid haze that has bedeviled Phnom Penh since Monday night will likely continue as a landfill in Dangkao district continued to burn on Friday, creating health risks for the capital's residents. Workers at the Dangkao landfill on site on Friday attributed the fire, which