Oil Find In Cambodia

[fxm88]

PHNOM PENH, Cambodia - The good news in this country of 14 million, where one-third of the people live on less than 50 cents a day, is that they've struck oil.

But the bad news is that the discovery may make things even worse.

Early analyses indicate that the income from crude and gas could quickly exceed the current gross domestic product. A rapid acquisition of wealth fuels fears that autocratic, repressive leaders could become even less responsive to the needs of their impoverished people.

The American company Chevron holds a 70 percent stake in the first of six proposed offshore tracts in the Gulf of Thailand. In 2004 and 2005 it sank five exploratory wells, and found oil in four of them.

Chevron plans 10 more wells in the next two years, although it won't speculate on how much oil it will find. Estimates from others have varied from 121 million to 700 million barrels.

...

Source: "Oil discovery brings concerns in Cambodia", THE PHILADELPHIA INQUIRER, December 08, 2006 (Google cache)

[coldcrush]

More work....class!

[tutsiwarrior]

if this 'discovery' is anywhere near Thai or Vietnam coastal waters then the benefit is not clear...you got 2 strong countries squeezing one that ain't got a pot to pizz in...

[Azul_Blanco]

World usage is around 85 million barrels a day. The range given in the article would equal a world supply of anywhere between 2 - 9 days. A drop in the bucket.

After the production expenses and Chevron's take, I don't see that there will be such a huge sum of money that allows the Cambodian government to be any more corrupt than it already is.

[mikeinminburi]

World usage is around 85 million barrels a day. The range given in the article would equal a world supply of anywhere between 2 - 9 days. A drop in the bucket.

After the production expenses and Chevron's take, I don't see that there will be such a huge sum of money that allows the Cambodian government to be any more corrupt than it already is.

how could you say there isnt much money involved?

say they were able to take 500 million barrels from it... (concidering its estimated there are anywhere from 200 - 700 million barrel's there)

the average price for a barrel of oil is currently $63 a barrel... thats about $31,500,000,000..

now, take chevrons take and production costs i think they are looking at maybe anywhere from 10 - 30% of that money to cambodia....

also, take into fact that oil is rising at a rapid rate.

30% of 31 and a half billion is $9,450,000,000..

which is 333,573,369,453.70 baht. (333 and a half BILLION baht)

if thats not a lot of money then what is?

[Casanundra]

The OP header states: "Oil Find In Cambodia, Set to become the next Nigeria?"

I hope not. The last thing we need is another country kidnapping oil workers and sending out spam mail saying they have several billion dollars from some Banker who died in a plane crash and how they need your bank details to help them launder the money out...

[Rinrada]

GOOD NEWS......Kampuchea needs all the breaks it can get....

Hun Sen might be an old despot but there are a "Hill" of a lot worse. and at least him and his Commis ( CPP) has kept things reasonably stable since 1993...(apart from one or 2 incidents....incl Prince Chak...etc)and I believe him and Sam Rainsey might even be talking. ...

Reminds me of the last time I bumped into him (H.E. HS) up in TB Meanchy Province(FFin God Forsaken place)waiting for a helicopter.....I got it first...

[alexth]

Should get Bush on the phone and ask him if he is planning any wars in Cambodia in the near future. If he is, then tourists go home and welcome to the investors...

[tso310]

World usage is around 85 million barrels a day. The range given in the article would equal a world supply of anywhere between 2 - 9 days. A drop in the bucket.

After the production expenses and Chevron's take, I don't see that there will be such a huge sum of money that allows the Cambodian government to be any more corrupt than it already is.

how could you say there isnt much money involved?

say they were able to take 500 million barrels from it... (concidering its estimated there are anywhere from 200 - 700 million barrel's there)

the average price for a barrel of oil is currently $63 a barrel... thats about $31,500,000,000..

now, take chevrons take and production costs i think they are looking at maybe anywhere from 10 - 30% of that money to cambodia....

also, take into fact that oil is rising at a rapid rate.

30% of 31 and a half billion is $9,450,000,000..

which is 333,573,369,453.70 baht. (333 and a half BILLION baht)

if thats not a lot of money then what is?

Both of you are right. 500 million barrels is nothing in world terms but to a pittifully poor country like Cambodia it might have a positive effect. However I have my doubts as to whether enough will trickle down to the average person to make any real difference. There'll probably be a boom in high end houses and cars.

[mikeinminburi]

exactly. to a country like norway, or iraq or even america its nothing.

to a country like cambodia where poverty can be seen in every part of the country, then its a lot.

[Khutan]

I hear they are planning to build a large Onshore operation near Sihanookville for the off-shore operation. The tender documents went out about 4 - 6 months ago.

[Rinrada]

I hear they are planning to build a large Onshore operation near Sihanookville for the off-shore operation. The tender documents went out about 4 - 6 months ago.

Who would have thought that Kompong Som ( old name fo Sih N Ville)would one day become the same as Houston,Dallas or even Aberdeen...Ye Oil...and oil that....

Not so long ago it was (still is ) a quiet hidaway for smugglers,backpackers ex S.F dropouts ./drunkards....and now......J.R.....yoo tee nai......and .... Sok Subai.......

Looks like "Ya-Mao" is still keeping a gentle watch over the place.

[JimsKnight]

I hear they are planning to build a large Onshore operation near Sihanookville for the off-shore operation. The tender documents went out about 4 - 6 months ago.

Who would have thought that Kompong Som ( old name fo Sih N Ville)would one day become the same as Houston,Dallas or even Aberdeen...Ye Oil...and oil that....

Not so long ago it was (still is ) a quiet hidaway for smugglers,backpackers ex S.F dropouts ./drunkards....and now......J.R.....yoo tee nai......and .... Sok Subai.......

Looks like "Ya-Mao" is still keeping a gentle watch over the place.

I seriously doubt it will rival the North Sea, GOM or Emirates somehow. Theres enough oil left for another 100 years and a mere 500 million barrels doesn't go far. 500 Billion barrels is when your talking about a serious oil find.

It will be interesting know if the yanks or brits get the contact for working or whether the'll just load up on local labour?????

[Rinrada]

Got this sent to me and thought you might be interested ....

Didnt realise that Kampuchaea had an Ambassador over "ere.

I used to know the guy that got appointed to Paris in ...199...whatever but at least things are looking good and they ken fine about the oil......

so from Nov 9th ....(bit long so abridged a wee bit)

MESSAGE FROM THE AMBASSADOR OF CAMBODIA H.E.MR. HOR NAMBORA, ON THE OCCASION OF THE 53RD ANNIVERSARY OF THE INDEPENDENCE DAY OF THE KINGDOM OF CAMBODIA

On the occasion of our 53rd National Day, I am honored to extend, on behalf of the Royal Government and People of Cambodia, our most sincere and heartfelt regards to the Government of the United Kingdom of Great Britain and Northern Ireland, Denmark, Finland, Ireland, Norway and Sweden and best wishes for happiness, prosperity and continued success for their People.

November 9th 2006 is the 53rd Anniversary of the Independence Day of the People of Cambodia. In this regard, I would like to extend my warmest blessings to my motherland’s greater advancement and prosperity under the reign of His Majesty the King Norodom Sihamoni and the great leadership of Prime Minister Samdech Hun Sen of Cambodia.

Cambodia: A Land of Smile, Rich Resources, and Investment Opportunities

Today, People in the entire Cambodia are celebrating the 53rd Anniversary of the Independence Day (November 9) with greatest honor and pride. All of us are greatly delighted, because this event is being organized during the period that our country is enjoying full peace and social and economic stability, while the process of building the rules of law, the implementation of democracy, the respect for human rights and the development are being steadily strengthened and expanded.

Indeed, our efforts to claim full independence of our nation had been made not in one or two days, even not in one or two months, or even more not in one or two years! The struggle for independence of the nation requires highest level of sacrifices and commitments, and the combination of wisdom and flexible and artful leadership with political and diplomatic means.

The November 9, of course, represents the date that Cambodia under the wise and determined leadership of King-Father Norodom Sihanouk virtually reached the final and great victory, forcing the Republic of France to give up all power and authorities to the Kingdom of Cambodia, including the civil administration, judiciary, security, military, diplomatic powers and the internal and external politics. However, the struggle under the high leadership of the King had started in 1945. Thus, his leadership during 1952- 1953 was just the final political and diplomatic struggle that leaded to freeing Cambodia and Cambodian people from French colonization thus achieving full national independence.

Cambodia’s economic outlook for 2006/7 and in the medium term remains favorable. The economic growth will be maintained at 7 to 8 percent per annum, while the inflation will be kept under 5 percent. The continued political stability, proactive private sector initiatives, steady progress in relentlessly implementing reforms by the Royal Government of Cambodia, continued support from development community partners and sustained foreign direct investment, underpin this forecast.

We are now focused firmly on tackling the issues we see as forming the next level in our economic transformation agenda. And, we are looking at mechanisms that will make it easier and more efficient for businesses to operate and to progress towards the achievement of Cambodia Millennium Development Goals (CMDGs) and to build upon achievement that have been for about a century at large.

Realizing peace and stability in Cambodia is the most important achievement of the Royal Government of Cambodia in the recent years. Looking forward to the future, we are filled with confidence. Further enhancement of the Cambodia-UK-Denmark-Finland-Ireland-Norway-Sweden friendly ties is our sincere wish and unswerving policy. We are convinced that, with the joint efforts of our governments and peoples, the friendship, equality, and mutual benefit between our countries will shine out resplendent splendors and bear more fruits in the days, months and years to come.

While Cambodia and UK-Denmark-Finland-Ireland-Norway-Sweden work closely together in regional trade and economic integration initiatives, we are very conscious that one missing element for us, is a process to advance our links at the bilateral level.

We want to ensure that all options for strengthening our political, trade and economic relationship – including the possibility of an economic partnership agreement negotiation are explored. I wish to continue working towards further strengthening the ties between our countries.

In this special occasion of the National Day of Cambodia, I wish to express my firm and sincere hope that our relations will continue to grow, bringing mutual benefits to the people of both countries.

This message on the occasion of the 9th November (National Day of Cambodia) is my first one since I took up my duties in the UK, Northern Ireland, Denmark, Norway, Finland and Sweden. It gives me the opportunity to thank the British, Irish, Danish, Norwegian, Finnish and Swedish Authorities for their warm welcome and to thank them for their warm hospitality.

May Cambodia-UK-Northern Ireland-Denmark-Norway-Finland-Sweden friendship continues to grow for generations to come! And prosperity and well-being upon their people! And finally, I wish all Cambodians living in those countries, a "Happy National Day!" of their Motherland, the Kingdom of Cambodia.

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Copyright 2005 © All rights reserved | [email protected]

CAMBODIA ECONOMIC FORUM

...and a word from the BOSS...

Prime Minister Samdech Hun Sen

Realizing peace and stability in Cambodia is the most important achievement of the Royal government of Cambodia in the recent years.

According to the recent survey, the poverty level has remarkably declined and key social indicators have improved in comparison to 1993.

Nevertheless, the country still faces several structural challenges and constraints. Garment export, tourism and construction continue to drive growth, but greater economic diversification will be needed to sustain future growth, especially in agriculture, though it is still highly vulnerable to the weather and low productivity.

The Royal Government of Cambodia hopes to make further progress in these areas via the "Rectangular Strategy" and the new "National Strategic Development Plan" (NSDP).

Indeed, oil and gas will be a new revenue stream that is an opportunity of developing Cambodia's economy.

This is a positive aspect and bright outlook for the Kingdom of Cambodia. However, in light of the negative destabilizing experience of other low income countries following the discovery of oil, what are the policies and institutional safeguards needed to ensure that Cambodia enjoys an "oil-blessing" and not plagued by an "oil-curse" in the coming years?

In the light of developing country experiences elsewhere, and given structure of the Cambodian economy, what are the best type of petroleum taxes to ensure economic efficiency and social equity?

We have to ensure that new revenue stream is wisely invested to enhance long-term economic growth and social equity, to progress towards the achievement of Cambodia Millennium Development Goals (CMDGs) and to build upon achievement that have been for about a century at large.