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PHNOM PENH - Cambodia signed an agreement with Singapore-listed KrisEnergy Ltd on Wednesday to develop an offshore oil field that could finally see Cambodia produce its own oil after years of delays.
Cambodia has struggled to develop oil fields in the Gulf of Thailand, as few companies are willing to invest in the area following the 2014 global oil price slump.

The agreement between Cambodia and KrisEnergy covers 3,083 sq km of the Khmer basin in the Gulf of Thailand known as Block A, the company said in a statement. Oil will be produced from the Apsara field within the block and output is expected within 24 months of the official launch of the project.

"Shortly after signing, we will declare a final investment decision and proceed to deliver first oil in 24 months -- sometime in 2019," said KrisEnergy chief operating officer Kelvin Tang at a signing ceremony in the Cambodian capital Phnom Penh.

Mr Tang said that KrisEnergy is looking for partners to invest in the project and that Cambodia will receive around $500 million in fees, taxes and royalties over the project's lifespan.

Cambodia's Finance Minister Aun Pornmoniroth said the area is estimated to yield over 30 million barrels over a nine-year period and that Cambodia was ready to learn from other countries' lessons and would not become oil-dependent.

"It will not allow itself to become a heavily oil dependent economy," Aun Pornmoniroth said. "It will instead use oil revenue to fuel structural transformation to sustain economic growth."

According to the agreement, KrisEnergy will own a 95% interest in the field while the Cambodian government will own the rest.

The first phase of development of the Apsara field will start with a single production platform and could potentially expand to 10 platforms depending on a final oil output determination, KrisEnergy said in their statement.

KrisEnergy bought out US oil major Chevron Corp's operating interest in Block A in 2014 for $65 million. Chevron found oil in 2004 in the block but failed to reach a development agreement with the Cambodian government.
Bangkok Post

Cambodia starts uncertain path toward oil production
Singapore-listed KrisEnergy gets a head start in an untested area, but notes development may be costly and require patience.

Aug. 23 (UPI) -- Cambodia's government signed off on the preliminary agreements necessary to implement its first offshore oil development ever, a Singapore-listed company said.

KrisEnergy said it signed documents outlining plans to develop the Aspara area in the Cambodian waters of the Gulf of Thailand. The company now has 60 days to declare a final investment decision on a project that will take about two years to produce its first batch of oil...
https://www.upi.com/Energy-News/2017/08 ... 503489752/

I wonder how much they paid in bribes. We all know that's what likely stopped Chevron from moving onwards.

True, but I think Chevron was outbid.

They all know how this game is played, pretty sure Chevron has some dirty tricks it would rather not showcase.



Or maybe they're saving their dosh to pay for recent the mess in Brazil?

http://www.aljazeera.com/blogs/americas ... 87786.html

tbh, anything that goes against Rockefeller is not an unhappy event, imo.

Whatever happened to…Cambodia’s oil prospects?
By: Paul Millar - September 21, 2017 | Cambodia
After a decade of failed negotiations with multinationals and a severe slump in global oil prices, Cambodia may have missed its chance to strike it big.

Deep within the waters of the Gulf of Thailand, a fortune lies waiting. Untapped for more than a decade, a reserve of petroleum and natural gas remains buried – testament to years of the Cambodian government’s failure to access resources potentially worth billions to the developing economy.

Last month, though, the government finally put pen to paper, signing a revised petroleum agreement with Singaporean company KrisEnergy that could pave the way for the Kingdom’s first oil exports. But a look at the nation’s long struggle to reap the benefits of its oil reserves suggests the risks may outweigh the rewards...
http://sea-globe.com/cambodia-oil/

CEOCambodiaNews wrote:Cambodia's Finance Minister Aun Pornmoniroth said "It will instead use oil revenue to fuel structural transformation to sustain economic growth."

Since when has the KOW responsibly used revenues for anything? Since when as the KOW managed natural resources in any sustainable manner? More tea money coming soon methinks.

- KrisEnergy plans to produce oil from Cambodia’s offshore Block A oil deposit next year and forecasted an investment of more than $30 million in the country this year, according to its 2017 annual report.

The Singapore-based energy company secured a petroleum licence for Block A from the Cambodian government in August last year, allowing it to pull oil from the 3,083-square-kilometre plot in the Gulf of Thailand.

KrisEnergy holds a 95 percent stake in Cambodia’s Block A, with the Ministry of Economy and Finance holding the remaining 5 percent.

In its annual report, the company projected it would spend $39.4 million in Cambodia this year – more than a third of the company’s total forecasted capital expenditure for the year, and a significant increase over the $3 million spent in the country last year.
https://www.phnompenhpost.com/business/ ... -next-year

Not going to happen

KrisEnergy set to review bids for drilling services
17 August 2018 | 08:52 ICT
Singapore-based firm KrisEnergy, which operates Cambodia’s offshore Block A, is now reviewing bids submitted by contractors for integrated drilling services and a facilities platform. They were submitted during the second quarter.

The procedure reflects a commitment the firm made to the Kingdom’s government, pledging that the first drop of oil would be extracted from the block late next year.

Ministry of Mines and Energy spokesman Cheap Sour said the progress puts the company a step closer to oil extraction after it formally signed a petroleum revenue sharing agreement with the government in August last year.
“This progress makes it clearer that the company is executing the timeframe that was determined, and is on the journey to begin producing oil in 2019,” Sour said.
https://www.phnompenhpost.com/business/ ... g-services

I remember HE's "Oil flowing by 12-12-12" plan. As in Dec. 12 of 2012.

There is apparently oil to be had out there, but there is a lot of oil off the coast of Brazil too. So far in Brazil it has turned out to be highly unprofitable to extract. And if the oil-hungry Chinese have been able to scoop up all other Cambodian assets, why haven't they jumped at a chance at this untapped nearby oil field? And why did Exxon Mobil walk away? Exxon Mobil would melt cute little puppies into oil if they knew the recipe and could make a buck. They must all know something KrisEnergy hasn't figured out yet.