OTC 2016: Cambodia Decision on First Oilfield Development by Year End
Cambodia is expected to make a decision on the development of the country's first oilfield project at offshore Block A in the Gulf of Thailand, which is being developed by Singapore-based KrisEnergy Ltd., by year end, Dr. Men Den, deputy general director of the General Department of Petroleum (GDP) in the Ministry of Mines and Energy (MME) told Rigzone Monday on the sidelines of the Offshore Technology Conference (OTC) 2016.
The government is holding off on a decision on Block A as it is currently in the midst of setting up a national authority to oversee the domestic energy sector, including oil and gas, Dr. Men Den said. He said the process is likely to take around four months, with another month required to set up the regulatory body.
The new organization will perform the role similar to that of Malaysia's national oil company Petroliam Nasional Berhad (PETRONAS), one of Southeast Asia's more successful stated-owned petroleum companies.
"We expect a decision on Block A by the end of this year," Dr. Men Den said, adding that the delay in approving the project is not expected to have a huge impact given the low oil prices currently.
KrisEnergy took over operatorship of Block A, after acquiring Chevron Corp.'s 27.5 percent stake for $65 million in August 2014. The company has already submitted the development plans to the government and have reached an agreement on its fiscal and technical terms. KrisEnergy indicated March 9 that first oil is expected 24 months after the final investment decision.
Just last week, the MME terminated a petroleum agreement with CPHL (Cambodia) Co. Ltd. to explore and develop offshore Block D, which the associated firm of Singapore-based Mirach Energy Ltd. had held since 2006.
While attention is currently focused offshore, Dr. Men Den said Cambodia's onshore petroleum acreages appears to hold larger potential than its offshore blocks. Citing seismic data, he said onshore assets hold 3 times more than potential petroleum resources than offshore blocks.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Malaysia's InvestKL Woos Top Oil, Gas MNCs to Base in Kuala Lumpur
- Petrobangla Invites EOIs for 3 Offshore Exploration Blocks in Bay of Bengal
- Malaysia's SapuraKencana Posts 7.1% Gain in 2Q FY17 PAT to $27M
- TH Heavy Engineering, McDermott End Partnership in Malaysia
- Singapore's NUS Slowly Builds its Petroleum Engineering Program
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension