Logo of Phnom Penh Post newspaper Phnom Penh Post - Premier hits oil, mulls next move

Premier hits oil, mulls next move

Premier hits oil, mulls next move

T HE consortium led by Premier Oil Camboya will consider its next move around the end of November after striking oil and gas with its first exploratory well in Cambodia's offshore Block 4.

Representatives from the consortium's three equal partners, British-owned Premier, Australian outfit Ampolex and the Japanese company Idemitsu, are to meet in Singapore to plot a strategy.

They will decide whether to opt for a 2 or 3-d seismic survey and what area to conduct it in within the block, which covers an area of more than 30,000 square km 150 km soutwest of Sihanoukville.

The oil executives should be encouraged by the strike, the third in four test wells so far drilled off Cambodia's shores. Currently more work is being carried out evaluating the find prior to the Singapore meeting.

Premier said in a press release that the well achieved a maximum flow of 1,180 barrels per day (bpd) and 1.3 million cubic feet of gas per day, and reached a total depth of 3,867 meters.

The flow rate is much better than earlier strikes made by Enterprise oil, 180 bpd or Campex, 500 bpd, the other two operators currently exploring offshore of Cambodia.

However an industry source said no accurate measure of the commerciality of strike can be made from a test well, which can inhibit the flow rate.

The source pointed out that the size of reserves have to be assessed in addition to flow rates to decide if a find is worth exploiting commercially.

The oil, measuring 42 on the American Petroleum Institute scale is said to be typical of southeast Asian crude with a fairly high wax content.

MOST VIEWED

  • Angkor Wat named as the top landmark for the second year

    Travel website TripAdvisor has named Cambodia’s ancient wonder Angkor Wat as the top landmark in the world for the second year running in their Travelers’ Choice Award 2018, an achievement Cambodian tourism operators expect will attract more tourists to the Kingdom. The website uses traveller

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Hun Sen detractors ‘will die’

    Prime Minister Hun Sen on Wednesday said those who curse or insult him would eventually die without a plot of land to bury their bodies after being killed by lightning, suffering the same fate as those who recently died in Thmar Baing district in Koh

  • Ministry’s plan for net sparks fears

    The government has ordered all domestic and international internet traffic in the Kingdom to pass through a Data Management Centre (DMC) that has been newly created by the state-owned Telecom Cambodia, in a move some have claimed is an attempt to censor government critics. Spokesman