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.

Chevron report completed

A tuk tuk driver parks outside a Caltex petrol station in Phnom Penh yesterday. Photograph: Pha Lina

Tuesday, 26 June 2012
Don Weinland
The Phnom Penh Post

Chevron has completed an environmental assessment for oil production in Cambodia’s Block A offshore oil field, a step insiders called important for the proposed extraction that appeared to stall early this year.

The Environmental Impact Assessment (EIA), completed in March and obtained yesterday by the Post, was the first to be seen publicly after Chevron’s 10 years in the Kingdom.

Documenting a rough three-phase plan, the EIA shows Chevron building up to 10 platforms during a nine-year period.

Risks associated with Chevron’s potential production were listed as “low” or “insignificant”.

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.

Cambodia seeks to resume talks with Thailand about disputed oil and gas zone

30 August 2011

PHNOM PENH (BNO NEWS) -- Cambodia is looking to resume talks with neighboring Thailand to resolve overlapping maritime claims in the Gulf of Thailand, the Cambodian National Petroleum Authority (CNPA) said in a statement on Tuesday.

The Cambodian government body said it has "a firm commitment to finding an equitable and transparent resolution" to the overlapping claims area which consists of a 27,000 square kilometers (10,425 square miles) stretch of seabed which is considered rich in oil and gas.

"The [government] would welcome the resumption of open and official negotiation on this issue and will pursue such a course as soon as practicable," the statement added.

[Thailand] Controversial policies may do long-term damage

August 19, 2011
By Thanong Khanthong
The Nation

The Pheu Thai government has introduced several controversial economic policies.

Let me go through them one by one.

1. Most people don't notice that an offshore oil deal is on the cards. Fugitive ex-prime minister Thaksin Shinawatra and Cambodian Prime Minister Hun Sen are now trying to strike an offshore oil deal. The defence minister, the foreign minister and the energy minister have got a mandate to work with Cambodia on offshore oil operations in the Gulf of Thailand. The change of government from Democrat to Pheu Thai has facilitated this business deal. Chevron, the US oil company, is waiting in the wings for this project.

This oil production will take place in the overlapping maritime area as a joint operation between Thailand, Cambodia and the United States. However, offshore oil drilling is now very risky, given the frequent occurence earthquakes and natural disasters. Shell is now trying to control an oil spill in the North Sea. BP created a huge oil spill in the Gulf of Mexico a year ago. A court in Ecuador earlier this year fined Chevron US$8 billion for polluting the Amazon region.

The oil giants have bad records in offshore drilling when it comes to safety and care for the environment. Any monetary compensation cannot write off the massive damage being done to the environment. If a huge oil spill were to happen in the Gulf of Thailand, it would spell doom for Pattaya, Hua Hin and other resort areas along our coast. Thailand's tourism industry would basically come to a grinding halt.

Little Information Known About Oil, Gas: Survey

Eight years after Chevron found crude oil off Cambodia’s coast, the American company has yet to begin full production. In remarks in April, Prime Minister Hun Sen said he wants the oil giant to begin production by 2012 or risk losing its rights.

Kong Sothanarith, VOA Khmer

Phnom Penh Tuesday, 15 February 2011

“There are few that know where petroleum is being explored, what companies have obtained licenses.”

A new survey suggests that many of Cambodia’s smaller business entrepreneurs are not fully aware of the development of the extractive industry.

The survey, initiated by Cambodians for Resource Revenue Transparency and issued Tuesday, found that out of 548 companies, most had little knowledge of the sector and that information was lacking in both the media and the business community.

However, observers say development of these resources, especially in oil and gas, will require good management and will affect many businesses.

“There are few that know where petroleum is being explored, what companies have obtained licenses,” said Neou Seiha, who led a survey for the Economic Institute of Cambodia.

Watchdog Renews Call for Oil Transparency

Men Kimseng, VOA Khmer
Washington, D.C Wednesday, 02 June 2010

“We want to see this revenue being managed transparently and accountably so that Cambodian people and their future generations benefit equally.”

The US oil giant Chevron and the Cambodian government need to improve transparency in the management of oil revenue, a Cambodian watchdog said Monday.

“What we want to know is how this revenue from natural resources is being managed, because it is a new sector,” Mam Sambath, chairman of Cambodians for Resource Revenue Transparency, told “Hello VOA.” “We want to see this revenue being managed transparently and accountably so that Cambodian people and their future generations benefit equally.”

Mam Sambath, who attended Chevron’s annual meeting last week in Houston, Texas, to advocate for a payment disclosure policy, said greater transparency will work in the company’s interest.

“The disclosure will instead promote a good image of Chevron in a country it operates,” he said. “And it will also attract other highly responsible companies to follow suit and invest in that particular country.”

Cambodia insists it has been transparent in managing state revenue.

“We don’t have a problem [if a company makes their payment public],” Hang Chuon Naron, secretary-general of the Ministry of Economy and Finance, told VOA Khmer. “The prime minister has authorized us to do that, and we have been doing that all along.”

However, a caller from Banteay Meanchey province expressed skepticism in the government’s transparency efforts. Villagers are seldom fully informed of gold mining operations in the province, the caller, who gave his name as Ny, said.

Transparency advocates say Cambodia would do well to become a member of the Extractive Industries Transparency Initiative, or EITI.

“On natural resources, the international community must push the government to be a member of EITI to ensure effectiveness in management of revenues and expenditure from mineral resources,” said Yim Sovann, spokesman for the opposition Sam Rainsy Party. “Sooner or later we will extract oil and gold, and revenue from this sector is gigantic. If we manage it properly we will be rich.”

Yim Sovann called for openness for input from the public, lawmakers and the international community for the drafting of a management law for natural resources currently underway.

Mam Sambath agrees.

“I strongly urge the government to consider becoming a member of EITI, so that we can better manage revenue from natural resources and help better manage our economy,” Mam Sambath said.

Chevron Share Group Votes for More Transparency

Men Kimseng, VOA Khmer
Washington Monday, 31 May 2010

“Once Chevron, which is a company that supports the Extractive Industries Transparency Initiative, takes into consideration the transparent payment disclosure policy, it will be more beneficial for the company and will set positive influence on oil explorers in Cambodia.”

A group of shareholders at an annual Chevron meeting voted in favor of more transparency in payments to host countries like Cambodia last week, in a move energy watchdogs hailed as a positive step.

Shareholders representing 160 million shares, about 7 percent of the total, voted in favor of the transparency proposal in an annual meeting in Houston, Texas, on May 26.

Chevron has exploratory interests in Cambodia’s offshore oil and gas and is facing increased pressure from the government to begin drilling. But money within the extractive industry, including in Cambodia, often remains veiled.

“With this level of shareholder support, Chevron can no longer ignore the call for transparency,” Ian Gary, an extractive industries policymaker for Oxfam America who attended the meeting, said in a press release. “We know oil revenues are often squandered through corruption, internal conflict and weak governance.”

Chevron paid more than $40 billion in taxes to governments around the world in 2008, according to Oxfam America, which filed a shareholder proposal for payment transparency within the company in December 2009.

“Once Chevron, which is a company that supports the Extractive Industries Transparency Initiative, takes into consideration the transparent payment disclosure policy, it will be more beneficial for the company and will set positive influence on oil explorers in Cambodia,” Mam Sambath, chairman of Cambodians for Resource Revenue Transparency, told VOA Khmer.

Transparency help communities understand the benefits of resource extraction, said Cheang Sokha, president of the Youth Resources Development Program. “Cambodian people need to know how big the resources are and the budget coming from the extraction, and what areas [of government] it will be used for.”

Ministry of Finance officials could not be reached for comment Friday, but lawmaker Cheam Yiep, who is head of the National Assembly’s finance committee, said the government’s overall position was one “in favor of transparency and good governance, especially in the extractive industry.”

Chevron votes down transparency proposals

Monday, 31 May 2010
Jeremy Mullins
The Phnom Penh Post

SEVERAL measures aimed at increasing Chevron’s transparency when operating in developing nations were defeated in a vote by shareholders at the firm’s annual meeting late last week.

Proposals to disclose payments made to host governments and to establish a human rights committee, initiated by Oxfam and five other Chevron shareholders, received the support of only 7 percent of total shareholders, according to a Chevron statement announcing the results of the meeting late Wednesday.

Chevron officials declined comment over whether it had made payments to secure rights to Cambodia’s offshore oil and gas Block A, citing “contractual arrangements” and “commercially confidential information” when contacted earlier this month. Company officials could not be reached for comment Sunday.

Cambodians for Resource Revenue Transparency chairman Mam Sambath said increased transparency would ease tensions between extractive industry firms and local communities.

“Secrecy encourages conflict,” he said in statement issued by Oxfam release. “We don’t want this to happen because we want Chevron to stay.”

The organisation noted it could re-file the motion for discussion at next year’s annual meeting, and continued to call on Chevron and its shareholders “to support disclosure of all payments to host governments”.

Chevron Shareholders Cast Their Votes for Transparency

Friday, May 28, 2010
Staff infoZine

During his remarks, Mam Sambath, chairman of Cambodians for Resource Revenue Transparency, said: “Secrecy encourages conflict. In Cambodia, over the past decades, there have been numerous conflicts between communities and companies, and these have led to losses for both sides. We don’t want this to happen because we want Chevron to stay, and this is your opportunity to take leadership in Cambodia and help us ensure that your operations in Cambodia will be successful and beneficial to both your company and Cambodians.”

The shareholder proposal was filed in December 2009 by Oxfam America and five institutions with Chevron holdings.

Washington, D.C. - infozine - According to preliminary results from Chevron annual meeting in Houston, shareholders representing approximately 160 million shares – worth more than $10 billion – voted in favor of a shareholder proposal calling for a transparent payment disclosure policy, said international humanitarian organization Oxfam America.

“With this level of shareholder support, Chevron can no longer ignore the call for transparency,” said Ian Gary, senior policy manager for extractive industries at Oxfam America, who attended the shareholder meeting. “We know oil revenues are too often squandered through corruption, internal conflict, and weak governance. This is an opportunity for Chevron to promote the rights of citizens by providing them with vital information about revenues coming into their countries. Transparency should not be a question for Chevron, it is central to accountable practice in the vulnerable countries where it operates.”

The shareholder proposal was filed in December 2009 by Oxfam America and five institutions with Chevron holdings. Prior to the vote yesterday, shareholders and their proxies spoke in favor of this proposal to help reduce instability and insecurity in oil-rich countries through a transparent and accountable payment disclosure policy in all countries where Chevron operates. Two other global oil companies, Statoil of Norway and Talisman Energy of Canada, already disclose this information to the public.

During his remarks, Mam Sambath, chairman of Cambodians for Resource Revenue Transparency, said: “Secrecy encourages conflict. In Cambodia, over the past decades, there have been numerous conflicts between communities and companies, and these have led to losses for both sides. We don’t want this to happen because we want Chevron to stay, and this is your opportunity to take leadership in Cambodia and help us ensure that your operations in Cambodia will be successful and beneficial to both your company and Cambodians.”

In 2008, Chevron paid more than $40 billion in taxes to governments around the world. Managed properly, these revenues can contribute to economic prosperity and stability in countries where Chevron and other companies operate. However, history has shown that oil company payments to governments as well as government receipts are often kept secret, leading to embezzlement, corruption, and revenue misappropriation, which, in many cases, has prevented oil revenues from contributing to economic development.

In his address to shareholders, Ian Gary said: “Disclosing payments would complement Chevron’s existing efforts in initiatives such as the Extractive Industries Transparency Initiative. EITI has serious limitations. It is voluntary and only works where governments have the political will be transparent…Chevron works in many countries run by governments suspected of corruption and worse. Unfair or not, undisclosed payments raise popular suspicion regarding Chevron’s role in maintaining a system of financial secrecy. Ensuring that payments are transparent puts Chevron in a leadership position and turns the spotlight back on host governments.”

With the results of yesterday’s vote, Oxfam America has the right to re-file this shareholder proposal with Chevron next year. Oxfam America will continue to call on Chevron and its shareholders to support disclosure of all payments to host governments.

SRP lawmaker seeks info on resource deals

Thursday, 06 May 2010
Vong Sokheng
The Phnom Penh Post

OPPOSITION lawmaker Son Chhay wrote a letter to National Assembly President Heng Samrin on Wednesday asking for government officials to explain their dealings with mining giant BHP Billiton and energy firm Total.

BHP secured a mining concession in Mondulkiri province in 2006 before abandoning it last year, saying that a feasability study conducted at the site had shown that large-scale production there would not be cost-effective. The firm has been thrust into the media spotlight in recent weeks after disclosing last month that it was conducting an internal inquiry based on evidence of possible corruption violations by employees working on one of its overseas projects.

Though BHP has declined to disclose the project at the centre of its inquiry, speculation has been focused on Cambodia and the Mondulkiri project in part because of comments made by Minister of Water Resources Lim Kean Hor in 2007. Speaking before the National Assembly, Lim Kean Hor said BHP had paid US$2.5 million in “tea money”, or off-the-books fees, to secure its concession.

Son Chhay inquired into this issue. “As a member of the National Assembly, I have the right to write a letter to invite government officials to explain to the National Assembly about what we did not know,” he said Wednesday. “Within my letter, there was a question related to the deals that the government made with BHP Billiton and Total over the oil and gas business.”

Council of Ministers spokesman Phay Siphan said Wednesday that he had not seen the letter and therefore could not comment. Son Chhay said he had given government officials a deadline of next week to respond to his request.

Hang Chuon Naron, secretary general at the Ministry of Economy and Finance, revealed in January that Total had paid the government $26 million in January to secure conditional rights to drill for oil in the Gulf of Thailand. In a speech last week, Prime Minister Hun Sen put the payment at $28 million, a figure confirmed by Total.

BHP has said that the $2.5 million payment to which Lim Kean Hor referred was devoted to social development projects, and Total said last week that $8 million of its payment to the government would be earmarked for similar projects.

On Tuesday, the government inked an oil exploration deal with the Japanese Oil, Gas and Metals National Corporation for an area covering the Northern Tonle Sap basin. Officials and company representatives have thus far declined to make the terms of this deal public.

Market Versus Cost for Chevron in Cambodia

Ros Sothea, VOA Khmer
Phnom Penh Tuesday, 04 May 2010

"The resources that have been identified in the offshore areas of Cambodia are much smaller and cut up with small pockets, which makes it very difficult to develop".

[Editor’s note: Eight years after Chevron found crude oil off Cambodia’s coast, the American company has yet to begin full production. In remarks in April, Prime Minister Hun Sen said he wants the oil giant to begin production by 2012 or risk losing its rights. Michael Walter, an adviser to the National Petroleum Authority, has 30 years of experience in the oil industry, including with the World Bank and Asian Development Bank. In an interview with VOA Khmer in Phnom Penh, he says things are not so simple.]

What has caused Chevron to delay offshore oil production for so long?

The question of development is always linked around commerciality. You can’t forget the fundamentals of geology and economics when you are dealing with the oil business. In Cambodia, it has been marginal, not quite enough to make it commercial, not quite enough to make it development. Contrarily, in Ghana, they discovered oil more recently and already they have put it into development of production very quickly, but it is very large—some 1,000 million barrels.

But the resources that have been identified in the offshore areas of Cambodia are much smaller and cut up with small pockets, which makes it very difficult to develop. Remember that an oil company tends to pursue big oil. If they find a big oil field, they are often prepared to throw more money at it to start production. If things don’t look so attractive, then of course the company isn’t so inclined to make production. However, it is very important for Cambodia because the economy here requires more input for development.

What is Chevron doing right now, following the government’s warning to revoke their contract?

I understand that they are going to do some more drilling in three more wells at the end of this month, which brings together 18 wells that have been drilled by the company, to try and improve the volume of recovered oil. And they plan to get production as soon as possible on a small scale development; smaller than people might think, but still significant for Cambodia, because it will provide the initial core development, and that is a starting point. I think the expectation now may meet what the prime minister said in 2012. Or maybe at the end of 2011 it can be the time for considering production.​ But there is no evaluation yet, and I don’t want to raise expectations, because it depends on the final development plan.

When will Chevron release its evaluation results, and what is the company’s next step?

Hopefully, there could be a decision later on this year, maybe the third or fourth quarter of the year. It is a decision regarding development and that leads to detailed development planning and engineering. So I think things would start at the end of this year. If the contractor finds enough oil or gas to produce it, and make a commercial development, then the petroleum contractor can apply for a development permit, and that starts a new period of rights, to start production.

Then they can work on a scheme for development. You know if you have a very big oil field you can engineer it very nicely, since you know that you will work for a profit. But if it is small, like the situation in Cambodia, you have to be very careful that you don’t let the cost get out the proportion. If the cost gets out of proportion, you can rapidly turn the economic viability for development into a nightmare, and you will lose money.

So there will be a lot of work in planning, engineering and designing, and the design has to be optimized to make sure the cost cuts down, and you have to prepare the well for extraction of oil. And of course, when you are going into production, you have to work on your operating cost. Actually, they already have done some of the planning and sent it to the government.

The challenges so far are finding resources available for commerciality, and if the oil price were to plummet, then it is possible that the development could be stalled.

Last year we saw the oil price fall to $35 a barrel after the very high price rise before. Now it is back up and stable at about $70 a barrel. If the oil price maintains at this level, that will be good for the development of oil in Cambodia.

Where will the oil be sold? Will there be an oil refinery in Cambodia?

Crude oil can be sold on the world market. Normally, if you have ship of crude oil ready, you can look for the best market and whoever pays you the most, and sometimes you sell just to traders. Whether a refinery will be available in Cambodia will depend on the market and the investment, because a refinery is very expensive. Let’s suppose you want to have a 30,000-barrel-per-day refinery; you will have to spend at least $600 million. If you’ve just got a small market, it is quite risky, because a small refinery usually makes a very high operating cost.

What is the model for revenue sharing between Cambodia and Chevron?

The model contract that Cambodia has is 12.5 percent of royalties and 30 percent of petroleum tax. But during the first three or four years, you have to allow the company to make a recovery of costs. The company is allowed to take oil for the compensation of cost, and the oil left will be spread and shared 60 percent to 40 percent, or 40 percent to 60 percent, as product-sharing. When you add all these different things together, it starts to become quite hard for the company.

What are the other 10 companies doing right now?

I don’t think there is anything on the public record about what they are doing. The only company besides Chevron that is drilling is Thai’s PTT, which brings the number of drill wells to 29 across the country. But none of them have found any oil yet.

Cambodia threatens to cancel Chevron's oil exploration

April 13, 2010
ABC Radio Australia

Civil society groups in Cambodia have voiced their concern over a recent threat by Prime Minister Hun Sen to cancel an oil exploration license with Chevron. The Cambodian leader has warned he'll terminate Chevron's offshore drilling rights if the company doesn't start producing oil by the end of 2012. It's prompted fears Cambodia could lose a committed and valuable investment partner.

Presenter: Stephanie March
Speakers: Mam Sambath, chairman of Cambodians for Resource Revenue Transparency; Brian Lund, East Asia director for Oxfam America based in Phnom Penh

Click here to listen to the audio program (Windows Media)

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.

Oxfam Calls on Chevron to Improve Transparency Practices

"Chevron is currently involved in oil and gas exploration in Cambodia" - KI-Media

SOURCE: Oxfam America

WASHINGTON, Dec. 10 /PRNewswire-USNewswire/ -- International aid agency Oxfam America filed a shareholder resolution today with Chevron calling on the California-based oil company to adopt a comprehensive policy of publicly disclosing payments made to governments where the company operates.

The resolution, filed on International Human Rights Day, aims to promote the rights of citizens in oil-rich countries by providing them with vital information about revenues coming into their countries. Co-filers on this resolution include Newground Social Investment, Robert Brooke Zevin Associates, Inc., and likely several other Chevron shareholders.

In 2008, Chevron paid more than $40 billion in taxes to governments around the world. Managed properly, oil revenues can contribute to economic growth and poverty reduction in countries where Chevron and other companies operate. However, history has shown that oil company payments to governments as well as government receipts are often kept secret, leading to embezzlement, corruption, and revenue misappropriation by host governments, which, in many cases, has prevented oil revenues from contributing to economic development in these countries.

"Natural resource revenues are too often squandered through corruption, internal conflict, and weak governance," said Raymond C. Offenheiser, president of Oxfam America. "Citizens of resource-rich developing countries need adequate information to hold their governments accountable for using natural resource revenues for essential services like health and education. Chevron should maintain its position as an industry leader on this issue by practicing the highest degree of disclosure of payments to host governments to help make this possible."

Chevron plays a leading role in the global Extractive Industries Transparency Initiative (EITI), a voluntary program designed to increase transparency of payments by oil, gas, and mining companies to governments where resources are extracted. EITI is recognized as an important step toward improving revenue transparency, but a voluntary initiative has limited effect and does not cover all countries where Chevron invests, including Angola, Chad, and Cambodia.

"While Chevron has endorsed the concept of revenue transparency with programs like EITI, it does not fully disclose payments to governments on a country-by-country basis. A policy for disclosing this information in all of Chevron's countries of operation will help ensure that the company's - and the shareholders' - investments contribute to increased economic development and political stability in developing nations," said Offenheiser. "We hope that other Chevron investors will join us in supporting this proposal."

Oxfam's proposal presents an opportunity for Chevron to take a leadership role as the US Congress contemplates legislation that would legally require all oil, gas, and mining companies registered with the Securities and Exchange Commission (SEC) to disclose payments made to host governments. This includes European companies, such as Shell and BP, as well as many companies in emerging markets such as China, India and Brazil. The Energy Security through Transparency Act of 2009 was introduced with bipartisan Senate support in September and is expected to be considered for a vote in 2010.

"This legislation hopes to address the lack of transparency in the oil, gas, and mining industry that often goes hand-in-hand with government corruption and violent conflict. The resulting instability poses a long-term threat to company investments and higher energy prices for consumers. By recognizing the value of transparency, Chevron can help elevate the industry and foster accountability in nations where secrecy has undermined development, democracy, and human rights," said Offenheiser.

Oxfam America is an international relief and development organization that creates lasting solutions to poverty, hunger, and injustice. Together with individuals and local groups in more than 100 countries, Oxfam saves lives, helps people overcome poverty, and fights for social justice. Oxfam America is an affiliate of Oxfam International.

Three more oil firms seek Gulf of Thailand rights

PHNOM PENH, Sept 17 (Reuters) - Cambodia has received three more applications for oil exploration rights in a disputed area of the Gulf of Thailand, a government spokesman said on Thursday.

U.S giant Chevron and two Japanese firms, Inpec and Marubeni Oil and Gas, have submitted a bid for access to Block 4, following an application on Tuesday by Mitsui Oil Exploration Co, a unit of Japanese trading house Mitsui & Co Ltd., said Ieng Sophalleth.

Marubeni Oil and Gas is a subsidiary of Marubeni Corp, Japan's fifth-biggest trading company.

Chevron Corp is already operator of Block A in the Gulf of Thailand. Cambodia does not yet produce oil and is unlikely to do so before 2010 at the earliest. The deadline for submission is Oct. 7.

Cambodia's Commerce Minister, Cham Prasidh, said the rise in oil prices and high demand prompted the four companies to seek new opportunities in the Gulf of Thailand.

"They are looking for an opportunity to pump oil somewhere such as Cambodia, which has untapped resources of oil and gas," Prasidh told Reuters.

Cambodia's exploration area covers 37,000 square km (14,300 sq miles). Another 27,000 square km (10,400 sq miles) thought to be rich in oil and gas deposits is claimed by Thailand.

In February, Cambodia's Prime Minister, Hun Sen, pledged to avoid entering into a protracted dispute with historic foes Thailand over the offshore reserves and said international laws would be strictly adhered to.

(Reporting by Ek Madra; Editing by Martin Petty)