Hanoi (VNA) -Cambodia has begun extracting crude oil from fields in its waters off thesouthwestern coast of Sihanoukville, Prime Minister Hun Sen said on December 29.
PM Hun Sen announced the news onsocial media, hailing the first extraction of crude oil "a new achievementfor Cambodia's economy".
Meanwhile, Singapore’s KrisEnergyLtd, which has joined hands with the Cambodian government in the project, saidthe concession started production on December 28 and would progress in phasesonce new wells were commissioned and completed.
Kelvin Tang, chief executive ofKrisEnergy's Cambodian operations, called the event "an importantstrategic milestone" for the company.
The Gulf of Thailand boastssignificant oil deposits, with Chevron first finding proven reserves offCambodia in 2005.
But production stalled as the Cambodiangovernment and the US giant failed to reach a revenue-sharing agreement,leading the firm to sell its stake to KrisEnergy in 2014 for 65 million USD.
Cambodia and KrisEnergy signed apact in 2017 to develop 3,083 sq km of the basin in the Gulf of Thailand knownas Block A.
KrisEnergy currently holds a 95percent stake of the block where the oil was taken from, while the governmentholds the rest.
The company expects a peakproduction rate of 7,500 barrels a day from the initial phase.
Cambodia hopes to earn at least 500million USD in royalties and taxes from the first phase of the project./.
PM Hun Sen announced the news onsocial media, hailing the first extraction of crude oil "a new achievementfor Cambodia's economy".
Meanwhile, Singapore’s KrisEnergyLtd, which has joined hands with the Cambodian government in the project, saidthe concession started production on December 28 and would progress in phasesonce new wells were commissioned and completed.
Kelvin Tang, chief executive ofKrisEnergy's Cambodian operations, called the event "an importantstrategic milestone" for the company.
The Gulf of Thailand boastssignificant oil deposits, with Chevron first finding proven reserves offCambodia in 2005.
But production stalled as the Cambodiangovernment and the US giant failed to reach a revenue-sharing agreement,leading the firm to sell its stake to KrisEnergy in 2014 for 65 million USD.
Cambodia and KrisEnergy signed apact in 2017 to develop 3,083 sq km of the basin in the Gulf of Thailand knownas Block A.
KrisEnergy currently holds a 95percent stake of the block where the oil was taken from, while the governmentholds the rest.
The company expects a peakproduction rate of 7,500 barrels a day from the initial phase.
Cambodia hopes to earn at least 500million USD in royalties and taxes from the first phase of the project./.
VNA
