Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia chalks up five oil wells

Cambodia chalks up five oil wells

Content image - Phnom Penh Post
Singapore-based oil and gas exploration company KrisEnergy Ltd on December 28 extracted the first drop of crude oil from Cambodian waters. MINISTRY OF MINES AND ENERGY

Cambodia chalks up five oil wells

Singapore-based oil and gas firm KrisEnergy Ltd began extracting crude oil from four additional wells late last month, according to Cheap Sour, a senior official at the Ministry of Mines and Energy.

This comes after the December 28 maiden oil extraction from the A-01D well – part of the five-well mini-platform featured in KrisEnergy’s “Mini-Phase 1A” development – in the offshore Cambodia Block A concession of the Khmer Basin’s Apsara oilfield.

And the PV Drilling III jack-up rig began drilling the remaining four wells A-02D through A-05D on January 30, according to Prime Minister Hun Sen.

Sour, director-general of the ministry’s General Department of Petroleum, told The Post that “If the five wells perform well, [KrisEnergy] will drill even more wells as their plans dictate.”

In late December, Hun Sen said the Kingdom could net about $30 million per annum from the commodity if international oil prices remain at around $55 per barrel, citing predictions from energy minister Suy Sem.

“Estimates show that we’ll pump out between 7,000 and 7,500 barrels a day, which is a considerably miniscule volume that won’t leave a profound impact on our economy soon, but a good start for the oil and gas industry in Cambodia,” the prime minister said.

December 28’s highly-anticipated milestone extraction from offshore Block A made the Kingdom the eighth oil producer in the 10-member ASEAN, with only Singapore and land-locked Laos not producing crude.

In a press statement issued the following day, Kelvin Tang, president and CEO of KrisEnergy’s Cambodian operations, stressed that Apsara’s first drop of oil marks a 10-year journey from when KrisEnergy initially became a partner in Block A.

“I convey my heartfelt appreciation to all relevant ministries and authorities for their assistance, cooperation and their dedication to get the Apsara oil development over the line. KrisEnergy is honoured to be a part of this historic occasion,” he said.

With Covid-19 hanging over the world, Tang added: “Progressing Apsara to first oil has been a tremendous achievement and a testament to the determination of the KrisEnergy team and the strong cooperation of our contractors and suppliers.

“Our task now is to complete drilling of the four remaining wells, stabilise production and monitor performance so that we may assess the best path forward to optimise Cambodia’s oil production and the value of the asset in the years ahead.”

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Cambodia purchases 4 million Molnupiravir tablets

    Cambodia has arranged for the purchase of four million US-made Molnupiravir pills – enough to treat 100,000 Covid-19 patients – even though the current rate of daily infections in Cambodia remains low. The medicine will be distributed to state hospitals, pharmacies and private clinics, according to the Samdech

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • Is Cambodia’s travel sector in for another cheerless holiday season?

    The travel and tourism sector was heaving back to life as borders started to reopen, promising a festive vibe for the holidays and New Year. But Omicron and other Covid-related issues are threatening to close the year on a bleak note ‘Seems [like] Covid-19 won’

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Cambodia planning new border checkpoint at Thma Da

    Cambodia is looking into the possibility of opening a new Thma Da Border Checkpoint with Thailand to boost trade and tourism. The Ministry of Public Works and Transport said on December 4 that Minister of Public Works and Transport Sun Chanthol led a technical working group