Logo of Phnom Penh Post newspaper Phnom Penh Post - Partner found to explore Block D

Partner found to explore Block D

Partner found to explore Block D

Singapore-listed oil and gas company Mirach Energy announced yesterday that its Cambodian partner firm, CPHL Cambodia, has signed an agreement with two Chinese companies to start drilling operations for exploration in its offshore oil block.

The two Chinese companies, both subsidiaries of Shenzhen-listed Landocean Energy Services, will drill three exploratory wells in Block D, a statement read.

CPHL, which is 48 per cent owned by Mirach, owns 100 per cent of Block D, which has yet to produce any oil but was estimated to have 226.88 million barrels by Mirach in 2006.

The agreement will only apply if it is accepted by Cambodia’s General Department of Petroleum, while the Chinese firms – PST Service Corporation and Chengdu Western Union Petro Engineering Technology – will be compensated either through cash or shares.

Nevertheless, CPHL, which acquired 30 years of exclusive production rights for Block D in 2006, still has “a long way to go” before it begins extracting oil, said Meng Saktheara, secretary of state at the Ministry of Mines and Energy.

“No oil has been discovered so far, so they just keep searching at the moment,” Saktheara said, comparing Block D to the more popular Block A, where Singaporean firm KrisEnergy bought out Chevron’s stake last year.

“[At] Block A, they have already found oil,” he said.

Although Block A is more developed, KrisEnergy has yet to extract oil due in part to ongoing negotiations with the government over revenue sharing.

Saktheara said that even if oil was discovered in Block D, CPHL would have to go through several lengthy procedures before being able to tap into the oil below.

The chairman of both CPHL and Mirach Energy, William Chan, previously declared in 2010 that oil would begin flowing from Block D as early as 2012.

Mirach Energy did not return a request for comment on the issue.

There was no target exploration date given in the company’s announcement.

MOST VIEWED

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia resumes issuance of tourist visas

    The Ministry of Foreign Affairs and International Cooperation has announced the resumption of its tourist visa and visa exemption programme after a long hiatus due to the Covid-19 pandemic. In a letter dated October 20 and addressed to foreign embassies and consulates, foreign minister Prak Sokhonn

  • S’ville set to turn into ‘second Shenzhen’

    The Ministry of Economy and Finance has awarded a master plan consultancy contract to top Chinese institute for the development and transformation of Preah Sihanouk province into a “Model Multi-Purpose Special Economic Zone”, Southeast Asia’s next logistics and resort hub and innovation centre. The