Cambodia still in talks with Chevron over delayed offshore project

PHNOM PENH - Cambodia is continuing talks with major US oil company Chevron on the delayed Block A offshore project which would be the country's first local hydrocarbon development, an industry source says.

In a report from Ho Chi Minh City late Thursday, Upstream said a Cambodian official told an ASEAN Council on Petroleum (Ascope) conference that the "discussions of the development work programme and investment proposal" were ongoing.

OIL SEEN FLOWING WITHIN 36 MONTHS OF PERMIT AND FINAL INVESTMENT DECISION

"Once the petroleum production permit is granted and final investment decision [is taken] then it will take 34 to 36 months to achieve first oil," he reportedly said.

Upstream recalled that Chevron declared the block commercial in August, 2010, eight years after receiving the awarded, and applied the next month for a petroleum production permit.

The Oslo-based oil and gas newspaper also noted that an environmental impact assessment had already been performed and that Chevron signed provisional agreements with services contractors for Block A last year.

"Chevron has to date drilled 18 exploration wells on the offshore block and the company's success in finding both oil and gas has encouraged others to apply for acreage," it said.

In addition to the block awarded to Chevron, the report noted that Cambodia had also awarded offshore blocks B, C, D, E and F and onshore blocks 12, 5 and 17.

ONSHORE ACREAGE LOOKS SET TO MOVE TO PETROVIETNAM

"Early reconnaissance work on Cambodia's onshore acreage looks set to move PetroVietnam into the next exploration phase on Block 15," the Upstream report said.

It added that Japan Oil, Gas and Metals National Corp was meanwhile said to be considering moving from a joint-study agreement to a production-sharing contract for its Block 17.

The unidentified Cambodian official reportedly said that 16 other onshore blocks were still open and that Phnom Penh is "optimistic" about the nation's hydrocarbon potential.

source

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