Cambodian premier says oil discovery will bring benefits, not problems
The Associated Press
PHNOM PENH, Cambodia: Expected revenues from recently discovered oil off the coast of Cambodia will be a boon to the impoverished country, not a curse, Prime Minister Hun Sen said Thursday.
Addressing concerns that huge and sudden income from the oil found in 2005 could exacerbate Cambodia's already widespread corruption problem, Hun Sen promised to direct the revenues "to productive investment and poverty reduction."
The oil money will help developing the country, he said at a seminar called "Cambodia: Economic Outlook for 2007."
U.S. energy giant Chevron Corp. discovered the oil in 2005 off the Cambodian coast, about 140 kilometers (87 miles) southwest of the seaport of Sihanoukville, which is about 185 kilometers (115 miles) southwest of the capital, Phnom Penh.
The company found the crude oil in four wells in an area called Block A and plans to drill 10 more wells by the end of 2007.
It is not clear yet how much oil Cambodia could expect to extract.
Last month, Te Duong Tara, the director-general of the Cambodian National Petroleum Authority, said that recent estimates that Block A holds 400 to 500 million barrels were mere speculation.
Still, he said income from the oil could have a "profound" impact on the future of Cambodia, where 35 percent of the country's 14 million people live below a national poverty line of U.S. 50 cents (€40 cents) a day.
Hun Sen said that oil money will help bolster Cambodia's medium- to long-term growth, promote greater economic diversity and help reduce poverty.
"We will make sure that oil is a blessing, not a curse," he said Thursday.
U.S. Ambassador Joseph Mussomeli is among those who have voiced concern about how Cambodia would handle a sudden surge in national income.
Mussemeli said late last year that oil production could generate considerably more than US$1 billion (€764 million) a year in revenue for Cambodia, although it might not begin until 2010.
Mussomeli noted that the prospective new income would be "an extraordinary jump" for a country that currently relies on some US$500 million (€391 million) from aid donors every year.
"It's a lot of money to pump into the system," he said. "If Cambodia can put in place the proper mechanisms for accountability and transparency for the oil revenue, then this country can change dramatically in the next decade."
If not, "it simply will make the corruption problem in Cambodia even worse," he said, adding "then the blessing will become a curse."
Addressing concerns that huge and sudden income from the oil found in 2005 could exacerbate Cambodia's already widespread corruption problem, Hun Sen promised to direct the revenues "to productive investment and poverty reduction."
The oil money will help developing the country, he said at a seminar called "Cambodia: Economic Outlook for 2007."
U.S. energy giant Chevron Corp. discovered the oil in 2005 off the Cambodian coast, about 140 kilometers (87 miles) southwest of the seaport of Sihanoukville, which is about 185 kilometers (115 miles) southwest of the capital, Phnom Penh.
The company found the crude oil in four wells in an area called Block A and plans to drill 10 more wells by the end of 2007.
It is not clear yet how much oil Cambodia could expect to extract.
Last month, Te Duong Tara, the director-general of the Cambodian National Petroleum Authority, said that recent estimates that Block A holds 400 to 500 million barrels were mere speculation.
Still, he said income from the oil could have a "profound" impact on the future of Cambodia, where 35 percent of the country's 14 million people live below a national poverty line of U.S. 50 cents (€40 cents) a day.
Hun Sen said that oil money will help bolster Cambodia's medium- to long-term growth, promote greater economic diversity and help reduce poverty.
"We will make sure that oil is a blessing, not a curse," he said Thursday.
U.S. Ambassador Joseph Mussomeli is among those who have voiced concern about how Cambodia would handle a sudden surge in national income.
Mussemeli said late last year that oil production could generate considerably more than US$1 billion (€764 million) a year in revenue for Cambodia, although it might not begin until 2010.
Mussomeli noted that the prospective new income would be "an extraordinary jump" for a country that currently relies on some US$500 million (€391 million) from aid donors every year.
"It's a lot of money to pump into the system," he said. "If Cambodia can put in place the proper mechanisms for accountability and transparency for the oil revenue, then this country can change dramatically in the next decade."
If not, "it simply will make the corruption problem in Cambodia even worse," he said, adding "then the blessing will become a curse."
6 comments:
KHMENG WAT KHNONG SROK
WE PRAY FOR CAMBODIA TO BE THE MOST DEVELOPPED COUNTRY IN ASIA WITH THE OIL AND GAS...
WE BELIEVE THAT THE RIGHT PERSON WILL BE IN CHARGE WITH A RIGHT POLICY TO GET CAMBODIA FROM POVERTY AND UNEMPLOYMENT.
CHHEYO KAMPUCHEA!
CHHEYO PROCHEACHUN KAMPUCHEA !
KHMENG WAT KHNONG SROK
Sahtouk, Mate!!!
If you want the right person to be in charge. You and your base voter have to git rid of CPP in thi supcoming communal and national elections.
Khmeng Wat Khnong Srok
I agree with you this one.
Bati
It's going to be a blessing for young communist radicals , 'cause with the massive corruption , sky rocketed real estate and created social gap there will be the largest in the world difference between rich and poor. Cambodia is the second Nepal , if Pol Pot lived a 10-15 years longer he would've got a support without a hint of objection.
Ah KHMENG WAT KHNONG SROK
let me save your comments down so after the oil drilled i can validate your prediction...
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