Logo of Phnom Penh Post newspaper Phnom Penh Post - Kingdom’s share in crude oil sale $14.21M

Kingdom’s share in crude oil sale $14.21M

Content image - Phnom Penh Post
A Krisenergy oil platform is guided by a barge. SUPPLIED

Kingdom’s share in crude oil sale $14.21M

Cambodia is set to receive more than $14 million in proceeds from the sale of nearly 300,000 barrels of crude oil stolen by the Bahamas-flagged tanker MT Strovolos last year following a payment dispute with the Apsara oil field’s Singaporean developer, KrisEnergy, according to a senior energy official.

KrisEnergy pumped a total of nearly 300,000 barrels from Cambodian waters, leaving more than 100,000 barrels’ worth in the five wells drilled by the company, not including the potential oil deposits found elsewhere, Ministry of Mines and Energy secretary of state Meng Saktheara wrote on social media on October 11.

Saktheara rejected claims made in the wake of KrisEnergy’s bankruptcy declaration last year, and subsequent heist, that Cambodia’s experiment with oil production had been a “failure”, and that all of the extracted crude had been lost.

“Not all of the crude oil that Cambodia produced is lost. National and international legal wrangling and tough trade negotiations have resulted in the full protection of the property and economic interests of Cambodia, as the owner of this commodity,” he said.

Of note, Indonesian authorities confirmed that 297,686.518 barrels of oil were onboard the MT Strovolos when they seized the tanker and detained its crew in July last year.

Saktheara added that a quality and technical assessment found that a total of 280,656 barrels can be sold, which he said has been returned to the government, to handle the sale and payments to all involved parties.

Ministry director-general for petroleum Cheap Sour confirmed to The Post late last month that the nearly 300,000 barrels of crude had been sold, and transferred from the MT Strovolos to an undisclosed buyer on September 10. “Payment will be made 30 days after the purchase, so we expect to receive the money around October 11,” he said.

Saktheara said that last month’s sale was “based” on the average September price of $89.867 per barrel for a final total sales amount of $25,222,554.72.

After a $11.45-per-barrel deduction for quality and market fees totalling $3,213,511.20 and services fees including shipping, insurance and transfer summing up to $1,715,306, the final amount to be distributed among the relevant parties came to $20,293,737.52, he said, adding that Cambodia’s 70 per cent slice would amount to $14,205,616.26.

He did not expressly confirm whether the buyer had made the payment.

In addition, the government also kept KrisEnergy’s $5 million deposit, which was forfeited in bankruptcy proceedings, Saktheara noted.

He pointed out that with Platform A and the existing oil infrastructure at the site, as well as the initial capital, extraction could continue from the oil wells and elsewhere.

“Cambodian oil production does not end with the bankruptcy of KrisEnergy.”

Meanwhile, a team at the energy ministry and Canadian-owned company EnerCam Resources Co Ltd are looking into picking up where KrisEnergy left off and studying the possibility of investing in oil extraction from Block A, using equipment seized by the ministry.

The energy ministry is also in preliminary talks with the Ministry of Economy and Finance on the feasibility of setting up a national oil company, so that the sector is no longer solely dependent on international companies.


  • Joy as Koh Ker Temple registered by UNESCO

    Cambodia's Koh Ker Temple archaeological site has been officially added to UNESCO’s World Heritage List, during the 45th session of the World Heritage Committee held in Riyadh, Saudi Arabia, on September 17. The ancient temple, also known as Lingapura or Chok Gargyar, is located in

  • Famed US collector family return artefacts to Cambodia

    In the latest repatriation of ancient artefacts from the US, a total of 33 pieces of Khmer cultural heritage will soon return home, according to the Ministry of Culture and Fine Arts. In a September 12 press statement, it said the US Attorney’s Office for the

  • Tina rebuffs ‘false claims’ over falling paddy price

    Agriculture minister Dith Tina has shed light on the trade of paddy rice in Battambang – Cambodia’s leading rice-producing province – in a bid to curb what he dubs a “social media fact distortion campaign” to destabilise the market. While acknowledging that the prices of paddy

  • Cambodia set to celebrate Koh Ker UNESCO listing

    To celebrate the inscription of the Koh Ker archaeological site on UNESCO’s World Heritage List, the Ministry of Cults and Religion has appealed to pagodas and places of worship to celebrate the achievement by ringing bells, shaking rattles and banging gongs on September 20. Venerable

  • Kampot curfew imposed to curb ‘gang’ violence

    Kampot provincial police have announced measures to contain a recent spike in antisocial behaviour by “unruly’ youth. Officials say the province has been plagued by recent violence among so-called “gang members”, who often fight with weapons such as knives and machetes. Several social observers have

  • PM outlines plans to discuss trade, policy during US visit

    Prime Minister Hun Manet is set to meet with senior US officials and business leaders during his upcoming visit to the US for the UN General Assembly (UNGA), scheduled for September 20. While addressing nearly 20,000 workers in Kampong Speu province, Manet said he aims to affirm