Phnom Penh (FN), Nov. 18 – Cambodian Prime Minister Hun Sen confirmed Monday that Cambodia will have the first drop of oil in 2020 but could not confirm the date, speaking in the graduation ceremony on Monday.
“I could not announce the actual date of oil schedule, as I did not want to be mistaken like in 2012,” the premier stated.
Cambodia’s Apsara oil is scheduled to flow in the first half of 2020 and the field is expected to reach a peak rate of 7,500 barrels of oil per day, according to the 15 November press release of KrisEnergy, an independent upstream oil and gas company.
The premier stated that revenues generated from the natural resources will be used to rehabilitate soft and hard infrastructures.
“The goal of the Royal Government is to take the revenue gained through oil to build hard infrastructure like roads, canals, electricity coverage, and soft infrastructure like human resources, health, and education.”
On 23 August 2018, the Royal Government of Cambodia and KrisEnergy jointly signed agreement for offshore oil development in Block A on the area of 3,083 square km, which lies over the Khmer Basin, an unproduced geological basin in the Cambodian maritime waters of the Gulf of Thailand.
Under the agreement, the Royal Government owns five percent of the shares, while KrisEnergy holds 95 percent.
“The Apsara oil field will be the first oil well in Cambodia. Cambodian Government will benefit from tax and five percent share of the revenue,” said Kelvin Tang, CEO of KrisEnergy.
KrisEnergy expects to produce 30 million barrels of crude oil in the first phase in the period of nine years, which expect to generate revenue of approximately USD 900 million given that the price is USD 80 per barrel, according to Cheap Sour, the director-general of the General Department of Petroleum at the Ministry of Mines and Energy.
KrisEnergy Ltd. is an independent upstream company focused on the exploration for and the development and production of oil and gas in Southeast Asia.
Cambodia has 25 oil blocks, six off-shores, Minister of Mines and Energy Suy Sem said.