Chevron Unit to Drill 10 More Oil, Gas Wells in Cambodia

FWN Financial News

SINGAPORE, Jul 06, 2006 (Dow Jones Commodities News via Comtex)

A unit of U.S. oil major Chevron Corp. (CVX) will drill five offshore exploration wells in Cambodia this year and another five in 2007 under a joint study agreement with the Cambodian government, the company said Thursday.

"The purpose of the JSA is to understand and expand the base resource of two of four discoveries made by COPCL in Block A in 2004 and 2005," Chevron Overseas Petroleum (Cambodia) Ltd., or COPCL, said in a statement.

COPCL holds a 55% interest in Block A, which covers 6,278 square kilometers in the Gulf of Thailand.

It was awarded operating rights for crude oil and natural gas exploration in March 2002, when it was already producing from the nearby Block B8/32 and holding interests in Blocks 7, 8 and 9 - in areas disputed by Thailand.

For Block A, the company is partnering with Moeco Cambodia Ltd., a unit of Japan's Mitsui Oil Exploration Co. that holds a 30% stake, and South Korean refiner GS Caltex Corp. with a 15% share.

Mitsui Oil Exploration is 47.35% owned by trading house Mitsui & Co. (8031.TO) and by about two dozen companies, including Japanese oil refiners.

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