Logo of Phnom Penh Post newspaper Phnom Penh Post - Vietnamese oil firm still on track to drill in 2017

Vietnamese oil firm still on track to drill in 2017

Vietnamese oil firm still on track to drill in 2017

A government official yesterday denied local media reports that it had received a request from Vietnamese state-owned PetroVietnam Exploration Production Corporation (PVEP) to extend the exploratory drilling contract for Block XV in Kampong Thom province for another year.

Meng Saktheara, secretary of state at the Ministry of Mines and Energy, said PVEP’s current timeline was intact with the company set to enter the third phase of its exploration campaign by January 2017. The new stage would see the company begin drilling test wells after years of seismic and geological surveys.

“There has been no formal announcement of an extension and the company has not approached the ministry asking for one,” he said.

In April, the government approved a request by PVEP to extend its exploratory third-phase drilling contract until January 2017, a year after it was scheduled to commence drilling. The company, which has held exclusive rights to the onshore block since 2010, was granted two years for each phase to be completed, and an additional two years to create a viable business plan for extraction. Its licence is set to expire in 2018.

Local media claimed this week that PVEP was seeking a further extension on test drilling due to the prolonged slump in global oil prices, ongoing negotiations with Cambodian authorities and a shakeup within the company’s upper management.

Saktheara expressed optimism that the company was on track to fulfill its agreement to explore the 6,900-square-kilometre onshore block, but said that there were still technical hurdles that needed to be overcome.

“The company still has to submit a new drilling campaign study after we found that their previous campaign fell below the 20 percent success rate,” he said. “So we required them to conduct a new seismic survey to enhance their rate of success.”

Saktheara explained that once the results of the survey were submitted to the government, they would be reviewed and approved, providing the company discovered an ample amount of oil to warrant drilling. “We are currently working with the technical team from the company and are awaiting the new data to see the commercial viability,” he said.

MOST VIEWED

  • Time to avert disastrous Covid situation: officials

    The Covid-19 situation in Cambodia is heading towards further large-scale community transmission as the total number of confirmed cases is nearing 61,000 and the death toll passed 900 on July 10, senior health officials warned. Ministry of Health spokeswoman Or Vandine expressed concern that the country was going

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided