Chevron aims for 2016

Monday, 02 July 2012
Don Weinland
The Phnom Penh Post

Oil production in Cambodia may not begin until 2016, or at least three years after the originally appointed date, Chevron officials reportedly said at a Ministry of Environment meeting on Friday.

Government officials yesterday confirmed the feasibility of the time frame.

If Chevron Overseas Petroleum Cambodia gained approval for a production permit by the end of this year, it could embark on a 34-month process that would lead to drawing oil from Cambodia’s offshore Block A in the Gulf of Thailand, according to people who attended Friday’s meeting.

Details of the process were unavailable yesterday, but would likely include internal investment decisions and agreements with the government, Mam Sambath, director of Development Partnership in Action (DPA), said yesterday, citing information disclosed in the meeting.

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."

Cambodia Expects Offshore Crude Field to Start Up This Year

By Rakteem Katakey and Supunnabul Suwannakij

Feb. 7 (Bloomberg) -- Cambodia expects oil production to start in the offshore Block A by the end of this year, said Deputy Prime Minister Sok An.

The country is reviewing the field operator Chevron Corp.’s offshore production license this year, said Sok An at an energy conference in Bangkok today. The company found oil and gas in waters off the country in 2005, he said today.

--Editors: Christian Schmollinger, Baldave Singh

Cambodia to issue production license to Chevron

Tuesday, February 07, 2012
By Oranan Paweewun

BANGKOK (MarketWatch) -- Cambodia plans to issue a license to Chevron Corp. allowing it to produce oil at the country's Block A, Deputy Prime Minister Sok An said Tuesday.

Production at Block A is expected to begin by the end of this year, he told reporters on the sidelines of an energy forum in Bangkok.

Sacrava's Political Cartoon: A Thirsty Beast

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

Cambodian PM sets Chevron oil production deadline

Tuesday April 6, 2010
AFP

Cambodian Prime Minister Hun Sen said Tuesday he would terminate his country's contract with Chevron if the US energy giant does not begin oil production from offshore fields by late 2012.

Following the discovery of oil in 2005, Cambodia was quickly feted as the region's next potential petro-state, but production has stalled as the government and Chevron appear to have failed to agree over revenue sharing.

"There is no oil production yet, but we have said that Chevron must produce oil by late 2012, otherwise we will have to terminate the contract, (if) negotiation cannot reach an agreement," Hun Sen said.

The Southeast Asian nation is sitting on an estimated hundreds of millions of barrels of crude, and three times as much natural gas.

It remains unclear how much can actually be recovered, or if potential revenue would be used to benefit Cambodia. Previously the premier has warned it was "highly premature" to estimate how much oil underseas reserves might hold.

On Tuesday Hun Sen dismissed concerns over how Cambodia -- ranked among the world's most corrupt countries -- would use its new-found oil and gas wealth.

"Up to this hour, there is not even a drop of oil, but they have been talking about corruption from crude oil since 2002-2003," the premier said, at a meeting of agricultural officials.

"Don't talk about using the money, but let's talk about making money. I am a bit angry when they talk about corruption as we have not had a drop of oil," he added.

Last year a report by London-based corruption watchdog Global Witness criticised Chevron for failing to disclose the amount of money it allegedly paid to secure rights to drill for Cambodia's offshore oil.

The report, called "Country for Sale", said revenues from Cambodia's oil and mineral wealth were "jeopardised by high-level corruption, nepotism and patronage" in allocating and managing the assets.

Cambodian PM gives Chevron ultimatum on oil [-Hun Xen in a hurry to see the oil curse?]

04.06.10
By SOPHENG CHEANG
Associated Press

PHNOM PENH, Cambodia -- Prime Minister Hun Sen pressed Chevron Corp. on Tuesday to get crude flowing from this impoverished country's first major oil discovery, threatening to cancel its rights to the offshore site if production does not start by 2012.

Hun Sen's announcement reflected the government's urgency about reaping oil revenues it says will help to finance develop and reduce poverty.

Chevron drilled 15 wells in 2007 at the site, Block A, west of coastal Preah Sihanouk province, and says it is evaluating its commercial potential.

"We have given a deadline to the Chevron company to produce oil by the end of 2012. If not, the contract will be terminated," Hun Sen said at a graduation ceremony on the outskirts of the capital, Phnom Penh.

A spokesman at Chevron's regional headquarters in Singapore declined to comment on Hun Sen's remarks without knowing their full content.

However, Chevron said in a statement that it is "aligned with the Royal Government of Cambodia's desire to see production from Block A as soon as economically possible. The first oil date is reliant on a successful exploration program, and is dependent on achieving key milestones."

Companies from Australia, China, France, Indonesia, Malaysia, Singapore and South Korea also have expressed interest in exploring Cambodian waters for oil.

Critics have expressed concern that oil income could exacerbate Cambodia's already rampant corruption if the government fails to develop a proper legal environment to manage the expected windfall.

Chevron extends Cambodian energy exploration deal

Jan 29, 2010
DPA

Chevron is one of many extractive companies that have been criticized in recent years for their refusal to say what they are paying for the rights to tap Cambodia's natural resources. Corruption is endemic in the impoverished South-East Asian nation, and there are concerns that any windfall from oil and gas revenues will be squandered.

Phnom Penh - US energy giant Chevron Corp has extended its offshore energy exploration deal with the Cambodian government, local media reported Friday, but the company provided no other details citing 'commercial reasons.'

'Chevron welcomes the ongoing opportunity to evaluate the Block A resource,' spokesman Gareth Johnstone told the Phnom Penh Post newspaper.

Block A, an area off Cambodia's coast in the Gulf of Thailand, is thought to be one of the nation's most promising areas for oil and gas exploration in the coming years.

Announcement of the deal after almost a year of negotiations with the Cambodian government puts an end to speculation that Chevron might quit the country.

The newspaper noted that Chevron has spent 125 million dollars and drilled 15 exploratory wells in Block A since 2002. The latest date for production, which has been pushed back several times, is 2013.

Chevron is one of many extractive companies that have been criticized in recent years for their refusal to say what they are paying for the rights to tap Cambodia's natural resources. Corruption is endemic in the impoverished South-East Asian nation, and there are concerns that any windfall from oil and gas revenues will be squandered.

Cambodia's first oil to be delayed, official says

Eric Watkins
Oil Diplomacy Editor
Oil & Gas Journal

LOS ANGELES, Nov. 4 -- Cambodia is unlikely to produce its first hydrocarbons until 2010, according to a senior government official.

Ho Vichit, vice-chairman of the Cambodian National Petroleum Authority, said his country has been anxious to tap its hydrocarbon resources, but the Chevron Corp.-operated Block A is unlikely to be on stream before that date at the earliest.

"Chevron is planning to do more exploration and appraisal. By the end of the year, they will submit a development plan," Ho told reporters on the sidelines of an energy conference in Singapore.

"It's premature to speculate how much oil or natural gas can be pumped from offshore Block A," Ho said at the Asia Oil and Gas Investment Congress.

"It must be recognized that hydrocarbons shows alone do not make…an oil or gas field, let alone an oil or gas field that might be viable for commercial development," said Ho.

Ho said there are some "technical challenges" to overcome and that "based on exploration results, it's most likely that a mix of low-sulfur waxy crude and some gas will be produced."

Hopes about the field's prospects were raised last year when the International Monetary Fund forecast recoverable reserves from Block A at 500 million bbl, with the first of three fields expected to start production in 2011.

The IMF predicted a $15 billion windfall for the Cambodian government from royalties and taxes over the life of the fields.

In March of this year, Chevron downplayed speculation about start-up dates for the field.

"As of early 2008, Chevron and the Block A participants are still evaluating development options for Block A, and therefore it would be too early to speculate on costs or schedules for the project," said Chevron spokesperson Nicole Hodgson.

In 2002 the Cambodian government awarded Chevron Overseas Petroleum (Cambodia) Ltd. a concession for the exploration and production of oil and gas offshore on Block A.

In 2005, COPL discovered oil in four exploration wells on Block A. Oil pay logged in the wells was 41-139 ft. Analysis of crude samples indicated the oil to be 44°.

A 5-well exploration and appraisal program was completed in 2006 and was followed by the exploration and appraisal of four more wells in 2007.

Chevron last year issued a downbeat assessment of the block, after its second drilling campaign revealed challenges, with hydrocarbons being dispersed rather than in one core field.

The company said it planned a third drilling campaign for late 2008-09.

Chevron operates Block A and holds a 55% interest, while Mitsui Oil Exploration holds 30%, and South Korea's GS Caltex has 15%.

Chevron hesitating in oil exploration in Cambodia due to viable development concept challenge

December 18, 2007
Cambodia Oil Project Invest Decision Likely 1Q '08 -Chevron Executive

BEIJING -(Dow Jones)- Chevron Corp. (CVX) is in the "very late stages" of evaluating oil fields discovered offshore Cambodia in 2004 and may make a decision on their development within three months, a senior executive said Tuesday.

"Probably I would expect some decisions coming out of Chevron in the first quarter or so of 2008 about what our go-forward plans are," said Stephen Green, chief executive of Chevron's South Asia unit.

Oil is distributed over a wide area in the 6,278 square-kilometer Block A, which is around 200 kilometers off the coast of Cambodia, rather than a single pool, Green said.

This adds to the challenge of drawing up a viable development concept for the fields, said Green.

Meetings will take place with the Cambodian government and project partners before a final investment decision is made, he said.

In a recent report, the International Monetary Fund forecast recoverable reserves from the Chevron discoveries at 500 million barrels, with the first of three fields entering production in 2011.

The IMF predicted a $15 billion windfall for the Cambodian government from royalties and taxes over the life of the fields.

By David Winning, Dow Jones Newswires; 8610-65885848; david.winning@ dowjones.com

Cambodia's promising oil block tricky to develop

Thursday June 7, 2007

SINGAPORE, June 7 (Reuters) - Cambodia's hopes for oil riches took a hit on Thursday as U.S. major Chevron said technical challenges needed to be addressed before it moved to develop its offshore Block A.

Chevron completed a preliminary analysis of the results of its second drilling campaign on the block, which Cambodia has touted as most promising, and released a downbeat assessement, even though it confirmed the presence of hydrocarbons.

"The oil and gas in the reservoir is unique for the Gulf of Thailand, in that the hydrocarbons are dispersed rather than located in one core field," Chevron said in a statement.

The company said a third drilling campaign was being considered for late 2008-2009.

This will be a disappointment for Cambodia, one of the poorest Asian countries, which had hoped to see first oil by 2009 or 2010.

Te Duong Tara, director general of the National Petroleum Authority had said in January that Cambodia hoped to start pumping oil from offshore fields by 2009 or early 2010.

Estimated reserves on block A at 400-700 million barrels were never confirmed and Steve Green, Chevron Asia South managing director dampened talk that first production could be on stream by 2009 in an interview with Reuters last month.

Chevron operates the block with a 55 percent interest, while Mitsui Oil Exploration holds a 30 percent stake and South Korea's GS Caltex a 15 percent stake.

Revenue from even relatively small oil reserves would have a major impact on Cambodia's economy, which is still recovering from Pol Pot's ultra-Maoist revolution in the late 1970s.

Cambodia imports more than 1 million tonnes of refined oil products annually, mostly from Thailand, Vietnam and Singapore.

More hope may come from Block D where China Petrotech Holdings Limited completed a 3-D seismic survey earlier this year, leading to estimates of recoverable reserves of 227 million barrels of crude and 496 billion cubic feet of natural gas.

The company said in April it would draw up an exploration plan over the next few months before embarking on the first exploration well drilling programme.