Oil revenue no short-term fix to economic growth: PM

Prime Minister Hun Sen has said that oil revenues will have less of an impact in the short term on the country’s overall economy than other traditional business sectors. His statement was made during a joint ceremony for the inauguration of  the Chamkar Mon Water Treatment Plant and the ground-breaking of the Bakheng Water Treatment Plant yesterday.

“Recently, there has been analyses on whether the oil yield can support the Cambodian economy. I would like to emphasise that the revenue from oil resources is still small and cannot support the Cambodian economy yet,” the Prime Minister said. According to Mr Hun Sen, the first well has been operating for 33 days and has extracted 1,236 barrels per day for a total haul of 40,788 barrels to this point.

“If a barrel of oil costs more than $50, this means we can get just over $30 million a year, which is less than the income [derived] from travel visas issued to one million foreign tourists,” he explained. Mr Hun Sen said that the second well has only just started operations, with the third, fourth and fifth wells scheduled to follow one at a time.

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