Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia hoping to produce oil this year, despite global slump

Cambodia hoping to produce oil this year, despite global slump

Cambodia hoping to produce oil this year, despite global slump

As the global price of oil craters amid the Covid-19 pandemic, Singapore-based KrisEnergy Ltd remains on track to extract the first drop of oil in the first half of this year, said a Ministry of Mines and Energy senior official.

KrisEnergy is currently developing the Apsara oilfield in Cambodia’s offshore Block A, which it expects to reach a peak rate of 7,500 barrels of oil per day.

Speaking at a press conference titled Progress and Implementation plan of Ministry of Mines and Energy on Tuesday, the ministry’s General Department of Petroleum director-general Cheap Sour said the ministry has not yet offered guidelines to the company about the outbreak’s potential impact on its operation.

“We will have a discussion with the company about studying how the oil field development project in Block A will be impacted by the outbreak.

“The recent drop in oil price will probably lead to a loss of confidence for financiers investing their money in the oil sector,” said Sour.

He said the ministry has been working hard to attract investors to Cambodia’s oil sector. “We will strive to attract investors who want to explore for oil and continue to push for oil production by 2020.”

US crude benchmark West Texas Intermediate (WTI) briefly plummeted nearly 20 per cent to below $14.50 on Monday – its lowest since 1999 – as stockpiles continue to accumulate as a result of demand drying up amid the outbreak, reported AFP.

Sour said Cambodia has divided domestic kerosene exploration into six offshore and 19 onshore blocks.

In December, the ministry granted Chinese-owned Cambodian Resources Energy Development Co Ltd a three-year exploration licence in the Gulf of Thailand’s Block D, off the coast of Cambodia.

The company is scheduled to begin exploration of Block D, which covers 5,500sq km, this year.

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