Logo of Phnom Penh Post newspaper Phnom Penh Post - Chinese company granted licence to explore Block D

Chinese company granted licence to explore Block D

Content image - Phnom Penh Post
Cambodian Resources Energy Development Co Ltd has been granted a three-year exploration licence in the Gulf of Thailand’s Block D, off the coast of Cambodia. Photo supplied

Chinese company granted licence to explore Block D

Chinese-owned Cambodian Resources Energy Development Co Ltd has been granted a three-year exploration licence in the Gulf of Thailand’s Block D, off the coast of Cambodia, a senior official at the General Department of Petroleum told The Post on Thursday.

General Department of Petroleum director-general Cheap Sour said the Ministry of Mines and Energy and Cambodian Resources Energy Development signed an agreement in December that gave the company the right to explore the area.

The company is scheduled to begin exploration of Block D this year.

“Right now, the company is studying all the paperwork. Next, they will begin exploring the oil field.

“If they see that the bloc has potential, they will begin preparations to extract oil. But we are in the beginning stages, so it will take a long time before any oil is extracted,” he said.

He noted that the ministry is prioritising attracting more investors to the mines and energy sector in the Kingdom.

Block D is a 5,500sq km zone in the Gulf of Thailand that was previously licensed to local firm CPHL (Cambodia) Co Ltd.

The government revoked that exploration licence in May 2016 after the company failed to meet the terms of the agreement.

According to Sour, Cambodia has divided regions for kerosene exploration into six offshore and 19 onshore blocks.

Sour said the ministry is currently negotiating an agreement with Canadian firm EnerCam Co to explore Block VIII.

“I expect that we will be reaching an agreement on oil exploration with the company soon,” he said.

Singapore-based KrisEnergy is currently developing the Apsara oilfield in Cambodia’s offshore Block A. The company aims to extract the first drop of oil later this year. The field is expected to reach a peak rate of 7,500 barrels of oil per day, according to KrisEnergy.

MOST VIEWED

  • School reopening to be postponed until November

    Minister of Education Hang Chuon Naron on Tuesday wrote to Prime Minister Hun Sen requesting a delay of school reopening across the Kingdom until November, when the new academic year begins. In his letter, Chuon Naron said the postponement is warranted to avoid the new

  • Foreigners in Kingdom must now register in FPCS system

    The Ministry of Interior’s General Department of Immigration (GDI) announced that it would not grant visa extensions to foreigners staying in Cambodia if their names are not listed on the Foreigners Present in Cambodia System (FPCS) by July 1. Foreign nationals can register in the

  • Covid-19 at ‘alarming rate’, health ministry says

    The Covid-19 risk level for individual transmission is at an “alarming rate” in the Kingdom and its probability is “not low”, warned Health Ministry spokesperson Or Vandine. “Cambodia’s coronavirus scenario is classified as being at an early stage of the pandemic because of ongoing

  • Mandatory quarantine for 30,000 workers begins

    Some of the roughly 30,000 workers from factories and enterprises across the Kingdom who went on leave during Khmer New Year began their government-imposed 14-day quarantine on Monday. Speaking at a press conference while visiting workers at the Phnom Penh Special Economic Zone on Monday, Ministry

  • Unemployed to get $40 per month

    The Ministry of Labour and Vocational Training has instructed enterprises, business owners and travel agencies in five provinces to prepare the proper forms for the suspension of employment contracts. This, it said, will make it easier for the ministry to transfer $40 a month to workers

  • Gov’t travel ban flouted

    While the majority of Cambodians have paid heed to Prime Minister Hun Sen’s order to stay put and not travel during the Khmer New Year – the holidays of which were also postponed – several hundred have left Phnom Penh nonetheless. They have allegedly breached provincial

  • G20 energy ministers struggle to finalise oil output cuts

    Top oil producers struggled to finalise production cuts during a virtual summit held by Group of 20 (G20) energy ministers on Friday, despite US President Donald Trump’s mediation efforts to end a standoff with Mexico. The final G20 communique appeared to gloss over simmering divisions

  • Kingdom revises travel restriction order

    The government on Friday eased the district and provincial border restrictions issued on Thursday. People are now allowed to cross districts within their provinces. Phnom Penh and Kandal province are to be treated as a single region where people are allowed to travel freely. In

  • Private schools struggling

    The Cambodian Higher Education Association has claimed that 113 private educational establishments are facing bankruptcy because of their inability to pay rent and staff salaries in light of nationwide school closures caused by the Covid-19 outbreak. It said the financial trouble started when the Ministry of

  • Khmer New Year holidays postponed

    In an effort to halt Covid-19 infections in the Kingdom, Prime Minister Hun Sen has postponed the Khmer New Year holidays scheduled from April 13 to 16. While the people will not have their usual break, nor will there be any public celebrations or gatherings at pagodas,