Singapore-based KrisEnergy company is expected to launch the extraction of crude oil in Cambodia in late 2019 or early 2020 but that oil will not be refined in the country. (Source: khmertimeskh.com)Phnom Penh (VNA) – Singapore-based KrisEnergy company isexpected to launch the extraction of crude oil in Cambodia in late 2019 orearly 2020 but that oil will not be refined in the country.
Lacking the infrastructure needed to process thecommodity, Cambodia will have to sell its crude oil when it starts producinglater this year, Meng Saktheara, Secretary of State at theMinistry of Mines and Energy, told reporters during a press conference on April2.
The oil will be extracted from the Apsaraoilfield, located in Block A of the Khmer Basin in the Gulf of Thailand.
In the first stage, three platforms will comeonline: 1A, 1B, and 1C.
Patform 1A, composed of 20 wells, could extractan estimated 8 million barrels of crude oil in its lifetime.
In 2014, KrisEnergy, which already had aminority share in the exploration area, purchased a controlling interest inCambodia’s only offshore oil reserves for 65 million USD from US oil giant Chevron.
According to a report by Oxfam and CambodianFor Resources Revenue Transparency, the first phase could stretch six yearswith an expected gross oil recovery of only 8.6 million barrels.
If the finalfiscal terms remain the same as those that are now publicly available,potential revenues to the government during the entire first phase of six yearscould amount to around 90 million USD to 120 million USD at oil prices of 70-90USD per barrel, the report said.
Lacking the infrastructure needed to process thecommodity, Cambodia will have to sell its crude oil when it starts producinglater this year, Meng Saktheara, Secretary of State at theMinistry of Mines and Energy, told reporters during a press conference on April2.
The oil will be extracted from the Apsaraoilfield, located in Block A of the Khmer Basin in the Gulf of Thailand.
In the first stage, three platforms will comeonline: 1A, 1B, and 1C.
Patform 1A, composed of 20 wells, could extractan estimated 8 million barrels of crude oil in its lifetime.
In 2014, KrisEnergy, which already had aminority share in the exploration area, purchased a controlling interest inCambodia’s only offshore oil reserves for 65 million USD from US oil giant Chevron.
According to a report by Oxfam and CambodianFor Resources Revenue Transparency, the first phase could stretch six yearswith an expected gross oil recovery of only 8.6 million barrels.
If the finalfiscal terms remain the same as those that are now publicly available,potential revenues to the government during the entire first phase of six yearscould amount to around 90 million USD to 120 million USD at oil prices of 70-90USD per barrel, the report said.
Lim Solinn,Oxfam Country Director, told Khmer Times that the economic benefits of theoperation will be substantial whether Cambodia processed the oil or exports it.-VNA
VNA
