LG-Caltex Oil Acquires Stake in Block A Offshore Cambodia

LG-Caltex Oil has acquired a 15 percent interest Block A offshore Cambodia in the Gulf of Thailand from ChevronTexaco. "We don't have an exact figure for recoverable reserves in the field since exploration has not begun, but a preliminary study estimated 400 million barrels of crude oil and three trillion cubic feet of gas," LG-Caltex said. The company expects to recover its investments in four years after commercial production begins, and to earn about $600 million of revenue from the investment.

Chevron was granted a 70 percent interest in the exploration and development of Block A in March 2002 from the Cambodian National Petroleum Authority. After the deal, Chevron's share in the project had fallen to 55 percent. The remaining 30 percent of the 6,278 square km site had been awarded to Japan's Mitsu Oil Exploration Co.

LG-Caltex is a 50-50 joint venture between South Korea's third largest LG group and ChevronTexaco.