Cambodia - Next Oil and Natural Gas Frontier?

Tue, 07 February 2012
By. John C.K. Daly
OilPrice.com

Prime Minister Hun Sen seems to be overly optimistic about when offshore oil production would begin however, as Chevron Overseas Petroleum (Cambodia) Ltd. officials have informed the Cambodian government that oil extraction would take place this year. According to Council of Ministers spokesman Ek Tha, the Cambodian government and Chevron Overseas Petroleum (Cambodia) Ltd. plan to release a joint statement on the status of Bloc A and their partnership sometime in the first quarter of the year.

U.S. and Japanese companies are interested in prospecting for oil and natural gas in Cambodia.

According to Phai Siphan, state secretary and spokesman of the Council of Ministers Office, in the provinces of Preah Vihear, Siemreab, and Kampong Thom there are 17 oil blocs covering a total area of over 2,300 square miles undergoing seismic study, where around 6,000 boreholes, each 0.2 inches in diameter, are drilled to a depth of 20 to 65 feet.

Phai noted that Japanese company JOGMEC (Japan Oil Gas, Metals Corporation) began prospecting for oil and natural gas in 1996, telling reporters, "On 4 May 2010, JOGMEC signed a basic memorandum with the Cambodian Petroleum National Authority on all 17 inland blocs of the Kingdom of Cambodia in the provinces of Kampong Thom, Siemreab, and Preah Vihear, to study and investigate oil data," adding, "According to a statement by Samdech Prime Minister Hun Sen, on 12 December 2012, if there are no obstacles, we can hope to get the first drop of oil at 12 noon on December 2012. We don't know what we'll be facing in the days ahead. But we already knew our flexibility and our competence with U.S. oil company Chevron would make our dream become reality."

Japan's firm launches onshore oil, gas exploration in Cambodia

PHNOM PENH, Jan. 31 (Xinhua) -- Japan's state-affiliated Japanese Oil, Gas and Metals National Corporation (JOGMEC) on Tuesday started the seismic acquisition operation for oil and gas exploration in Cambodia's Preah Vihear province, said a government official.

Phay Siphan, spokesman for the Council of Ministers, said the JOGMEC would drill 6,000 holes, each has a 6-milimeter diameter and up to a depth of 20 meters for the four-month seismic survey in the province.

Preah Vihear province, situated some 500 kilometers northwest of Phnom Penh, is home to more than 200 ancient temples including Preah Vihear temple, one of the world heritage sites.

Ho Vichit, vice-chairman of Cambodian National Petroleum Authority, said the seismic acquisition operation is one of the first steps of oil and gas exploration study and the operation will not have any impact on the environment and natural cultural sites.

Japanese firms undertake oil exploration study in northern Cambodia

January 31, 2012

PHNOM PENH (Kyodo) -- Two Japanese oil firms began seismic acquisition studies in Cambodia on Tuesday to explore for oil and gas reserves in three northern provinces.

Cambodian government spokesman Phay Siphan said the state-owned Japan Oil, Gas and Metals National Corp. and Mitsui Oil Exploration Co. started the seismic acquisition operation in Tbeng Meanchey, Preah Vihear Province.

The operation will be conducted in a total area of 6,500 square kilometers in Preah Vihear, Siem Reap and Kompong Thom provinces, Phay Siphan said.

JOGMEC Executive Director Akira Suzuki told Deputy Prime Minister Sok An in a meeting Monday that the operation will roughly take four months to complete, according to a Cambodian official who attended the meeting.

Sacrava's Political Cartoon: Tonle Sap Lake

Cartoon by Sacrava (on the web at http://sacrava.blogspot.com)

Japan Oil Company To Explore Tonle Sap

A reflection from the sunshine is seen above a fishing boat on the Tonle Sap river. (Photo: AP)

Chun Sakada, VOA Khmer
Phnom Penh Tuesday, 04 May 2010

“We demand the government to study the effects on the environment, fish stocks and biodiversity before there is exploration, and allow stakeholders to participate in the study."

Cambodia signed an agreement with Japan’s national oil company on Tuesday that opens the possibility of exploration on the northern edge of the Tonle Sap lake, a major source of fish for much of Cambodia.

The agreement, signed Tuesday afternoon by Council Minister Sok An and the Japan Oil, Gas and Metals National Corporation, or Jogmec, includes cooperation in evaluating business opportunities, researching technology and potential drilling.

Jogmec Executive Director Akira Suzuki called the agreement a first step in further oil and gas development between Cambodian and Japan. The state-run company would also be open to more private-sector development in the future, he said.

Jogmec’s predecessor, the Japan National Oil Corporation, surveyed Cambodia for onshore oil reserves between 1997 and 1999. Jogmec and Mitsui Oil Exploration Co., Ltd., will examine data from the survey, according to a joint statement by the government and the company. If the survey finds suitable oil reserves, Jogmec will work with Cambodia’s National Petroleum Authority for full exploration rights.

Sok An said Tuesday the Jogmec deal will help bolster the economy with job opportunities. And Chiaki Takahashi, vice minister of economy and trade for Japan, said he hoped the development of oil and gas here would help Cambodia become a “famous nation.”

But critics warn that Cambodia’s oil exploration could have high costs, especially if profits do not go to help the public. And environmentalists warn that the Tonle Sap project could hurt an ecosystem that supports many of the fish Cambodians rely on for protein.

Chhith Sam Ath, executive director of the NGO Forum, said exploration on the lake could hurt its environment and its fish.

“We demand the government to study the effects on the environment, fish stocks and biodiversity before there is exploration, and allow stakeholders to participate in the study,” he said.

Japanese oil company to survey Cambodian basin

May 4, 2010
The Associated Press
PHNOM PENH, Cambodia

A state-affiliated Japanese oil company was Tuesday granted rights by the Cambodian government to survey for oil around Southeast Asia's largest freshwater lake.

The Japan Oil, Gas and Metals National Corporation will conduct a study over 6,500 square kilometers (2,509 miles) of the Tonle Sap basin, located about 200 kilometers (120 miles) northwest of Cambodia's capital Phnom Penh.

The lake covers about 250,000 hectares (618,000 acres) during the dry season and expands to about 1.25 million hectares (3 million acres) during the rainy season.

It is known as a rich habitat with more than 200 species of fish, 42 types of reptiles, 225 species of birds and 46 kinds of mammals.

In the past, conservationists have expressed concern that oil projects could damage the basin's environment.

The government, which has promoted oil exploration in the Tonle Sap region as part of its energy strategy, says that it will protect the lake from environmental damage.

Fumiaki Fujita, a representative of the Japanese oil company, said it will first conduct onshore geological and geophysical surveys to assess oil reserves. If oil is found, the company will negotiate with the government for full-scale exploration of the area.

Southern Gold commences drilling program for 2009-2010 field season in Cambodia

Wednesday, December 02, 2009
Proactive Investors (Australia)

Diversified resources company Southern Gold has announced the commencement of drilling operations for the 2009‐2010 Field Season on the Snuol gold and base metals tenements in Cambodia.

The 2,500m program is testing the continuity of gold mineralisation intersected at the Anchor Prospect including 8m @ 5.9g/t gold (SNRC09) and at the nearby Oh Pok prospect and will also test several other prospects identified from soil and/or trenching results.

Managing director Stephen Biggins said the drilling operations were the first of an extensive program of diamond core and Reverse Circulation drilling that would be completed by Southern Gold on its Cambodian Projects over the next few months.

It is planned that drilling operations will be carried out utilising 2‐3 man portable diamond core drill rigs and 2 RC (multi‐purpose) drill rigs.

A soil sampling program completed last week on the Snoul tenement collected 895 samples to identify new gold and base metal anomalies which can be prioritised for trenching and/or drill testing.

This program will also include infill sampling of previously identified targets within the tenement.

A soil sampling program has also commenced on the Kratie South JV (JOGMEC) tenements, Preak Khlong and O’Kthung, with the aim of identifying new gold and base metal anomalies for trench and/or drill testing.

Drilling operations will commence shortly on the Kratie North and South JV tenements, which are located in the same intrusive related gold district as Oz Minerals Ltd’s Cambodian gold exploration projects.

Cambodia Exploration Update : Trenching and Drilling by JOGMEC JV Projects

Monday 27th April 2009
Announced by: SAU
The Age (Australia)

Current Exploration Highlights

• Multiple veins sets up to +900m long in trenching over gold soil anomaly,
• Big Toe Prospect (Kratie South JV)
• Gold mineralisation is consistent over 1.3km of trenching and open at both ends, Preak Khlong Prospect (Kratie South JV) ·Trenching and RC drilling completed over 3km x 1km gold/silver/lead soil anomaly, Oh Tron Prospect (Kratie North JV)

Currently awaiting results from:

• 660 metre Phase 1 RC drilling on Kratie North JV with JOGMEC
• 15 trenches on Kratie North for 2,600m
• 28 trenched in Kratie South for 4,700m

Click here to download the original PDF announcement including maps

Southern Gold Limited (ASX code "SAU") has completed its first exploration programme of the 2009 field season in Cambodia. A substantial program of drilling and trenching exploration work has been completed with a large number of assay results expected to be received in respect of this work during May.

Exploration on three of Southern Gold's seven tenements in Cambodia, is being fully funded by the Japanese Government-backed JOGMEC pursuant to a Joint Venture agreement whereby JOGMEC can fully fund exploration activity to a total of US$4.5 (~A$7) million over 3 years to earn a 51% interest in these tenements ­ Phnum Khtong (Kratie North Project), and two adjoining blocks, Preak Khlong and O'Kthung (Kratie South Project), all to the northeast of Phnom Penh.

All three tenements are to the northeast of Phnom Penh (Figure 4).

Southern Gold predicts major discovery in Cambodia

Southern Gold operations

14 Apr 2008
MineBox (Australia)

Asian equity market and resources investors have been told Adelaide-based explorer Southern Gold Ltd is on the verge of making a “major” gold discovery in Cambodia.

Addressing the peak Asia Mining Congress in Singapore, Southern Gold’s Managing Director, Mr Stephen Biggins, said recent investments in the Company’s Cambodian campaigns had enabled it to “significantly” step up exploration activities at three of its eight gold projects in the country’s northeast.

“We have now cemented our early mover advantage in Cambodia, and are on the verge of making a major gold discovery,” Mr Biggins told the mining and investment Congress.

Southern Gold is the sole or majority owner of eight Cambodian tenements, covering a total of 1,800 km2 in the highly prospective northeast region, where artisanal mining has long pointed to extensive high-grade gold and base metals mineralisation.

Exploration licences have been granted for three of Southern Gold’s wholly-owned tenements, with applications pending on a further four.

The Company’s first drilling at its Snoul concession, completed in December last year, intersected gold in three holes. Detailed geochemistry and geological programs are currently being undertaken.

“All eight tenements suggest the potential for high-grade gold finds, with widespread mineralised intrusive bodies and highly anomalous regional soils,” Mr Biggins said in Singapore.

“In some places, there is undrilled gold mineralisation literally protruding out of the ground and this continues to add to our confidence of an imminent large discovery.”

Last month, the Company’s exploration program received a fillip when the Japanese Government-owned Japan Oil, Gas and Metals National Corporation (JOGMEC) agreed to invest US$4.5 million over three years in exploration at the Australian explorer’s Phnum Khtong, Preak Khlong and O’Kthung tenements.

Through the agreement, JOGMEC joined a list of major Southern Gold shareholders that includes Chinese resource investor, CITIC and Australia’s Macquarie Bank.

“The Joint Venture with JOGMEC has enabled us to significantly bring forward our exploration schedules – and potential discoveries – in Cambodia, which we regard as one of the world’s great mining frontiers,” said Mr Biggins.

“As well as enabling us to commit to much larger surveying and drilling budgets, these investments also provide substantial potential for us to acquire additional projects."

Japanese Joint Venture plan with Southern Gold in Cambodia

Sydney, Mar 26, 2008 (RWE Aust Business News) The Japanese government organisation, JOGMEC, plans to fund accelerated exploration on three Cambodian gold and base metal projects under a Letter of Intent with Southern Gold.

JOGMEC (Japan Oil, Gas and Metals National Corp) and Southern Gold will JV over three of Southern Gold's Cambodian tenements.

JOGMEC will invest $US4.5 million ($4.94m) within three years to earn a 51 per cent interest in Phnum Khtong (Kratie North project) and two adjoining blocks, Preak Khlong and O'Kthung (Kratie South project).

The agreement includes an up-front payment to Southern Gold of approximately $US400,000 on signing of the LOI for current exploration costs, followed by a decision to proceed with a full joint venture on the Kratie North and/or the Kratie South Projects by June 2008.

The three tenements are among eight gold projects, wholly or majority owned, by Southern Gold under its strategy to establish a cornerstone gold business in Cambodia to compliment the Australian gold projects.