Sihanoukville (FN), Dec. 29 – Cambodia officially kicked off her first ever oil extraction located in Block A of the Gulf of Cambodia in Sihanoukville on Tuesday.
Today, 29 December 2020, marks the 22nd anniversary of Prime Minister Hun Sen’s win-win policy, a compass that completely ended the civil war nationwide that brings absolute peace and stability to the Kingdom until these days.
“On behalf of the Royal Government of Cambodia, it is a great pleasure to inform my compatriots that Cambodia's first oil drop will be produced from the A-0ID well of Platform A in the Gulf of Cambodia in Sihanoukville province on 29 December 2020 by Singapore’s oil and gas exploration company KrisEnergy,” the premier wrote on his Facebook page on Tuesday.
“Due to the efforts of the Royal Government and project operator KrisEnergy, we have so far successfully installed the necessary equipment and facilities for the production process of our oil and gas resources,” he added.
Prime Minister Hun Sen recalled that the first oil agreement was signed in 2002 with the Chevron Oversea Petroleum (Cambodia) Ltd., LG Caltex Oil Corporation, Moeco Cambodia Co., Ltd. and KrisEnergy. These firms are subsidiaries of the US-based Chevron.
“In 2010, Chevron announced the discovery of a commercial oil field. According to the plan, the first oil production is scheduled to begin in December 2012. However, examining the economic distribution and legal constraints involved in the development and business plan proposed by Chevron at that time, it required the two sides to renegotiate some of the terms of the agreement to be consistent with the provisions of Cambodian law and better equity in the distribution of economic benefits,” the premier said.
During the process of renegotiations, Chevron Oversea Petroleum (Cambodia) Ltd., LG Caltex Oil Corporation and Moeco Cambodia Co., Ltd. requested to withdraw one after another in 2014 and 2016.
Negotiations were extended for a long time from 2010 until 23 August 2017, when a new agreement, a new development and business plan were reached, paving the way for the construction and development of an oil well platform.
Significant and major oil production infrastructure that has been built, installed and completed in Block A for the production process includes: the construction of oil platform manufactured in Batam island, Indonesia, began in December 2019 and was completed in August 2020. The platform arrived in Cambodia’s Block A and was completed on 7 September 2020.
The oil production vessel was installed, repaired and equipped in September 2020 in Singapore and arrived in Cambodia’s Block A on 18 October 2020. The tanker is ready to operate in Block A on 9 November 2020.
The first well was completed on 23 December 2020 and the first production will begin on 29 December 2020. In addition, two other wells have already been drilled to the oil reservoir.
Prime Minister Hun Sen stressed that the beginning of the oil production is a blessing for Cambodia.
“This is the significant step for Cambodia to build national capacity and the oil, gas and energy industries in Cambodia. Key benefits include national budget revenue, economic benefits from the diversification of the oil industry and national capacity building in this sector. The discovery and exploitation of oil and gas resources in Cambodia under the leadership of the Royal Government is a blessing for the people and the nation, not a curse as some ill-intended people claimed,” he said.