Logo of Phnom Penh Post newspaper Phnom Penh Post - Progress made on draft petroleum law

Progress made on draft petroleum law

Progress made on draft petroleum law

A Draft of the long-anticipated petroleum law is to be finalised by Cambodia’s National Petroleum Authority this week.

A CNPA official, who took part in drafting the regulations, said the authority would hold a meeting this week to finalise a suggested framework for oil extraction.

The draft would then be passed to the Council of Ministers. If approved, it would be handed to the National Assembly and the Senate before being passed into law by the King.

Speaking on the condition of anonymity, he said the law was not expected to change a great deal when it reached the Council of Ministers, as key partners such as the World Bank had participated in its drafting.

“It is at an international standard,” he said. Taxation provisions were contained in the draft, he said, but further consultation was required with the Ministry of Economy and Finance before levels were finalised.

Commentators welcomed the development.

Cambodians for Resources Revenue Transparency Chairman Mam Sambath, who had seen a draft of the law, said the most important element was a requirement to disclose the terms of contracts agreed between the government and industry players.
“I think the draft law will increase transparency,” he said. However, he said engagement of civil society was very important – and had been largely missing so far.
A public consultation had not been conducted, nor had the draft been publicly distributed, he said.
Cheam Yeap, chairman of the Economy, Finance, Banking and Audit Commission at the National Assembly, confirmed the draft was near completion, and said that the government was committed to passing the law before December 12, 2012, the deadline Deputy Prime Minister Sok An had set for oil to flow in the Kingdom.
“We have to completely avoid the oil curse. By contrast, we have to receive an oil blessing,” he said. Some experts have written of a “resource curse”, saying economic growth tends to be weaker in countries that contain valuable commodities.
CNPA Director General Te Doung Tara declined to comment, as did spokespeople from energy giants Chevron and Total.


  • Kingdom may hire Turkish power ship

    Cambodia is considering negotiating with Turkey to hire a 200MW-capacity power ship to meet electricity demands as the country faces an ongoing electrical shortage, according to the prime minister. Speaking to garment workers in Pursat province on Wednesday, Prime Minister Hun Sen said Electricite du

  • Woman who scaled Cambodia’s three highest peaks eyes Everest

    One of the very few Cambodian women to have successfully reached the Kingdom’s three highest peaks is now eyeing Malaysia’s tallest mountain, Mount Kinabalu, and potentially even the world’s tallest straddling Nepal and China, Mount Everest. While in many Western countries it

  • Cheap, clean and efficient: The firm leading Cambodia’s solar revolution

    Sitting in her bright and airy 17th floor office, Rithya Menon, Okra Smart Solar’s lead firmware engineer, checks the frequently updating data telling her everything about how well their community services are operating. “I saw in the data that there was a problem with

  • PM Hun Sen: Cambodia will not die without EBA scheme

    Prime Minister Hun Sen on Wednesday reiterated that he would not be overly concerned if Cambodia had its access to the EU’s “Everything But Arms” (EBA) scheme withdrawn because the Kingdom would not die without it. Hun Sen was speaking to factory workers in