Chevron's Cambodian Oil Project on Track for 2009 Start-Up
SINGAPORE (Dow Jones Newswires), November 4, 2008
Cambodia remains on track to start up its first oil field next year from a Chevron Corp. led project, but "considerable caution must be exercised" in terms of the project's commercial viability, a senior official of the Cambodian National Petroleum Authority said Tuesday.
"It's premature to speculate" how much oil or natural gas can be pumped from offshore Block A, CNPA vice-chairman Ho Vichit told the Asia Oil and Gas Investment Congress.
"It must be recognized that hydrocarbons shows alone do not make...an oil or gas field, let alone an oil or gas field that might be viable for commercial development."
Vichit's startup schedule is consistent with earlier government estimates, although Chevron has in the past downplayed any firm timelines.
Block A, a 6,278 square-kilometer block about 200 kilometers off the coast of Cambodia, was discovered in 2005.
Vichit noted there are some "technical challenges" to overcome - reserves are spread over a wide area in small pools, rather than a single large reservoir, while the Cambodian government is still working on a petroleum law that will provide a legislative framework for extracting oil and gas.
"Based on exploration results, it's most likely that a mix of low-sulfur waxy crude and some gas will be produced," he said.
Chevron's unit in Cambodia owns a 55% stake in Block A, with partners Mitsui Oil Exploration and GS Caltex Corp. holding 30% and 15% respectively.
Last year, the International Monetary Fund forecast recoverable reserves at 500 million barrels, with the first of three fields entering production in 2011 - and predicted a $15 billion windfall for the government from royalties and taxes over the life of the fields.
Chevron hasn't given any estimates of reserves at Block A.
More than 10 foreign companies are drilling in Cambodia's six offshore blocks, including China National Offshore Oil Corp.
Copyright (c) 2008 Dow Jones & Company, Inc.
- Chevron Approves New Tech Investment To Raise Output At North Sea Field (Oct 20)
- Canada's Keyera Signs Pact With Chevron To Transport, Store NGL (Oct 10)
- Chevron Starts LNG Output at Australia's Wheatstone (Oct 09)
Company: Mitsui more info
- Japan's Mitsui OSK Targets 26% Stake In Swan's Indian LNG Unit (Sep 18)
- As Rivals Circle, Japan Boosting Firepower To Buy Global Energy Assets (Sep 23)
- Gas Glut Upends Global Trade Flows As Buyers Find New Leverage (Aug 16)
Company: China National Offshore Oil Corp more info
- CNOOC Outlines Business Strategy, Development Plans for 2014 (Feb 18)
- Sinopec Plans 1st Deepwater Well in South China Sea (Jun 16)
- Korean Firms Test Water Offshore China (Jun 04)
Company: GS Caltex Corp. more info
- S. Korea's GS Caltex Shuts Heavy Oil Upgrading Unit After Fire (Aug 10)
- Run Rates at S.Korea's GS Caltex Back at 93% after Cut Due to Oil Spill (Feb 05)
- S.Korea Completing Sea Cleanup 164,000 Liters Oil Leak-Coast Guard (Feb 03)
Company: Cambodian National Petroleum Authority more info
- KrisEnergy Formally Takes Over as Operator of Cambodia's Offshore Block A (Oct 02)
- Mirach Energy Updates on Upstream Operations in Cambodia, Indonesia (Mar 03)
- Cambodia Awards Total Oil Search Rights in Gulf of Thailand (Jul 20)