The Associated Press
PHNOM PENH, Cambodia: Cambodia's dream of seeing money flow from the discovery of oil will not come true overnight, a deputy prime minister said Thursday, in the latest warning against excitement over an anticipated oil bonanza.
The country will also remain dependent on petroleum product imports of around one million tons annually for years to come, said Sok An, a Cambodian deputy prime minister, in a speech at an investment conference.
While Cambodia cherishes a hope to have sufficient oil reserves to start domestic production, "we are cautioned by experienced oil men to be most cautious in our expectations," Sok An said. "We shall have to wait and see."
Offshore oil has been a much-talked-about topic in Cambodia in recent years following a discovery by U.S. energy giant Chevron Corp. in 2005. Companies from Australia, China, France, Indonesia, Malaysia, Singapore and South Korea have also expressed interest in exploring Cambodian seas for oil, and the government wants to use oil revenue to develop the country and reduce poverty.
Annual per capita income in Cambodia doubled to US$513 (€348) in 2006 from US$247 (€168) in 1994, but the country remains among the world's poorest. Some 35 percent of its 14 million people live below the national poverty line of just 45 U.S. cents (€0.31) a day.
And Sok An's comments may mean expensive imported fuels will continue to burden the country. Standard quality gasoline stands now at 4,350 riel (US$1.07; €.73) a liter; premium is at 4,450 riel (US$1.1; €.75) per liter.
Chevron has been conducting exploration in an offshore area called Block A, about 200 kilometers (77 square miles) west of Sihanoukville, Cambodia's coastal city 185 kilometers (115 miles) southwest of the capital Phnom Penh.
The company has so far drilled 15 wells in the area and is appraising the discovery to determine the extent of the reserves, Sok An said. Even if the find proves commercially viable, first oil production will not commence until "early next decade," he said.
"Of course, we all hope that the technical results of Chevron's evaluation of its discoveries will be good for Cambodia," he said.
But "until there are firm field development plans on the table, we should not consider any of the oil discoveries as constituting proved recoverable reserves," he added.
A total 27 wells have been drilled offshore Cambodia, Sok An said, without revealing other companies involved in exploration work.
Critics and observers have expressed concerns that income from oil could exacerbate Cambodia's already widespread corruption if the government fails to develop proper legal environment to manage the expected revenues.
The country will also remain dependent on petroleum product imports of around one million tons annually for years to come, said Sok An, a Cambodian deputy prime minister, in a speech at an investment conference.
While Cambodia cherishes a hope to have sufficient oil reserves to start domestic production, "we are cautioned by experienced oil men to be most cautious in our expectations," Sok An said. "We shall have to wait and see."
Offshore oil has been a much-talked-about topic in Cambodia in recent years following a discovery by U.S. energy giant Chevron Corp. in 2005. Companies from Australia, China, France, Indonesia, Malaysia, Singapore and South Korea have also expressed interest in exploring Cambodian seas for oil, and the government wants to use oil revenue to develop the country and reduce poverty.
Annual per capita income in Cambodia doubled to US$513 (€348) in 2006 from US$247 (€168) in 1994, but the country remains among the world's poorest. Some 35 percent of its 14 million people live below the national poverty line of just 45 U.S. cents (€0.31) a day.
And Sok An's comments may mean expensive imported fuels will continue to burden the country. Standard quality gasoline stands now at 4,350 riel (US$1.07; €.73) a liter; premium is at 4,450 riel (US$1.1; €.75) per liter.
Chevron has been conducting exploration in an offshore area called Block A, about 200 kilometers (77 square miles) west of Sihanoukville, Cambodia's coastal city 185 kilometers (115 miles) southwest of the capital Phnom Penh.
The company has so far drilled 15 wells in the area and is appraising the discovery to determine the extent of the reserves, Sok An said. Even if the find proves commercially viable, first oil production will not commence until "early next decade," he said.
"Of course, we all hope that the technical results of Chevron's evaluation of its discoveries will be good for Cambodia," he said.
But "until there are firm field development plans on the table, we should not consider any of the oil discoveries as constituting proved recoverable reserves," he added.
A total 27 wells have been drilled offshore Cambodia, Sok An said, without revealing other companies involved in exploration work.
Critics and observers have expressed concerns that income from oil could exacerbate Cambodia's already widespread corruption if the government fails to develop proper legal environment to manage the expected revenues.
11 comments:
Yes, that's right. We should not get too exited about this. Even the amount estimated so far isn't really heaven either. If it comes true, it must be still used efficiently in order to prosper from it.
More importantly is think of peace and moral first because without such, it doesn't matter how much oil we find, dead people can't benefit from it.
You have peace boy just not freedom and jusyice! For moral go ask your father!
Whether there is no oil or hard to get oil or a lot of oil the CPP should be more open about the operations. Who is the 27 companies exploring and where or they exploring, and how much they are paying the CPP for the right to explore, and what is their progress on each exploration?
If there is not much oil why so many searching for oil? Why is the CPP getting all these new naval boats to protect resources that is not there? Why is there is more negociations with Thailand on the dispute area when there no oil?
Well, you can find things much quicker with a lot of people than with one or two people. The ocean is huge and you have to drill a lot of holes to detect the oil. Keep in mind that we are racing against inflation. The longer you wait, the longer you are poor and suffering.
Let's hope that this will not be another Nigeria!
Hi! guys
I bet big china is going to be sole buyer, so do not rush boy I am your big brother still no need to worry.I pay you in advance, just keep the money and keep quiet. OK?
A team
Actually, PM is dreaming to get rich but NOT Khmer people, we're still poor.
Sok An is warning the Khmers not to expect too much riches because most of the riches will go to CPP and their cronies in their offshores bank accounts.
Oil exploration causes million of dollars and oil companies measure the cost/benefit ratio very carefully. Unless the payoff is there, not one of them will waist time and money to do explaration. In this case, we have 27 companies. Why so many if no oil? Chevron, who have explored the longest, have not reduce its exploration? Why continue if there is no oil?
Sok An is warning the Khmers not to expect too much riches because most of the riches will go to CPP and their cronies in their offshores bank accounts.
Oil exploration causes million of dollars and oil companies measure the cost/benefit ratio very carefully. Unless the payoff is there, not one of them will waist time and money to do explaration. In this case, we have 27 companies. Why so many if no oil? Chevron, who have explored the longest, have not reduce its exploration? Why continue if there is no oil?
AH SOK AN needs to shut the fuck up! Let the fucken oil data speak for it! This mother fucker doesn’t need to paint the dam picture of doom and gloom to kill Cambodian ambition for a better future! These days only the foreigners and the CPP are making all the money except dirt poor Cambodian people! I have enough!
The day your fucken arse fall from power will the day that the new Cambodian government will raid your illegal bank account oversea or wherever!
You are a fucken liar and stop lying over and over because I don't believe any of your bullshit! Just pass the damn anti-corruption law so that Cambodian people can hold all of corrupted mother fuckers accountable for the all corruptions and the misconducts!
You will be hold accountable for your action mother fucker! This is not a warning!
I'm v8,oils is a world's super mega casino todays.so invest your money in stock!
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