Concessions Cancelled as Oil Price Plummets

[geovalin]

Khmer Times/May Kunmakara

The government cancelled two concessions for offshore oil – Block B and Block F – held by two foreign companies last year because they failed to comply with the terms of their agreements, senior officials from Ministry of Mines and Energy (MME) told Khmer Times yesterday. “The company did not perform according to, and failed to fulfill, the obligations stated in their Petroleum Agreements [PAs],” said ministry secretary of state Meng Saktheara.

Block B has a total area of 6,300 square kilometers while block F covers 7,000 sqm, officials said. Yesterday’s announcement occurred as the price of crude oil fell below $28 per barrel for the first time in more than 12 years. Mr. Saktheara said feasibility studies for both blocks were being conducted by Malaysia-owned Resourceful Petroleum Limited. The government had signed an agreement with Thailand’s PPTEP and Resourceful Petroleum Limited for Block B in 2005 and another agreement for Block F with China’s CNOOC in 2007. However, both blocks had been transferred to Resourceful Petroleum Limited in 2013.

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