Logo of Phnom Penh Post newspaper Phnom Penh Post - Draft petroleum law to be in place by the year’s end

Draft petroleum law to be in place by the year’s end

Content image - Phnom Penh Post
A motorist fills up her motorcycle at a petrol station in Phnom Penh late last year. Hong Menea

Draft petroleum law to be in place by the year’s end

A draft of the long-anticipated petroleum law is 80 per cent complete, according to a Ministry of Mines and Energy official, and will put in place price mechanisms to ensure globally representative and competitive fuel costs.

“We want to make sure the draft law is in compliance with ministry’s policy and consistency with other natural resources laws and regulations and international best practices as well as to attract investment in this new industry,” said Keo Tourt, director of administration at the Mines and Energy Ministry’s General Department of General Affairs.

Tourt said the legislation will be in the form of a sub-decree and is being worked on in collaboration with experts and consultants on the management of oil and gas pricing.

“It is a well-known fact that oil and gas resources are both a gift and a curse. It is how we manage it that makes it a gift or a curse for the people and its economy,” he added.

Tourt said that while the law would look at pricing, it will also ensure petroleum and other relevant products would have to meet certain quality standards, as determined by the ministry in charge.

Bin Many Mialia, marketing division manager at PTT (Cambodia) said that while he hasn’t seen a copy of the draft law yet, he was unsure what kind of price mechanism would be applicable in Cambodia’s case.

However, he said: “It could be workable if the government has its own state enterprise to lead the oil market in Cambodia.”

While the law would look at local pricing as well as offshore and onshore exploration, Mialia said it should also consider midstream and downstream processes as well.

He added that there was a lot of oil smuggling across the country and border areas, which result in huge losses to state revenues.

“To eliminate oil smuggling can start any time, it is duty of the government to do so,” he added.

KrisEnergy, which holds a 55 per cent interest in Cambodia’s Block A, said in a filing last month that it is close to reaching a deal with the government to extract oil from the block.

MOST VIEWED

  • 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,

  • No word on state of emergency

    The National Assembly (NA) said it will postpone all unnecessary meetings in line with guidance from the Ministry of Health and the World Health Organisation (WHO) amid the Covid-19 pandemic. However, it did not say when or how it will debate the “state of emergency”

  • NA, Senate set for bill on ‘emergency’

    Prime Minister Hun Sen has requested the Senate to convene an extraordinary meeting to review the draft law that aims to put the Kingdom in a state of emergency after the bill reached the National Assembly (NA) on Friday. The draft law, which was approved

  • Tourists can now prolong their stay

    The Ministry of Foreign Affairs and International Cooperation said tourists holding Visa T and arriving in the Kingdom after January 1 will be allowed to prolong their stay until they are able to return home. The decision comes as Cambodia and most countries take measures to

  • Temporarily laid-off workers to get just $70

    Prime Minister Hun Sen announced changes in the allowances for temporarily laid-off garment workers from receiving 60 per cent of the minimum wage to a flat $70 because factories cannot pay, he said. Workers will also not be required to attend training courses after more than 100 factories

  • Hun Sen, ministers, officials donate salaries in virus fight

    Prime Minister Hun Sen and other senior government officials have decided to donate their salaries to the National Committee for Combating Covid-19 in support of the ongoing battle against the coronavirus. Hun Sen announced in an April 1 letter that because the Covid-19 situation in Cambodia