Cambodia postpones oil production start
Cambodia has postponed the start of oil production by four years to 2016, backing away for the first time from its claims that oil would begin flowing by this year, Voice of America reported.
The main reason is that the country lacks the necessary infrastructure not only in upstream production, but also in transport, storage and downstream.
Cambodia is currently working with a number of multinational and national companies, including Chevron, to develop offshore blocks of oil, see our story.
But international officials, among them experts from the International Monetary Fund, say that the country has much more to do to prepare for oil production and the revenue it would bring, including laws on taxation and regulation.
“We need to work with Chevron before we can get a final investment decision from the company,” said Men Den, director of operations for the Cambodia National Petroleum Authority (CNPA).
However, international companies are prepared to tap Cambodia’s anticipated new oil wealth. Danish bunker supplier Go4 Bunker Denmark on October 31 officially expanded its business into Cambodia, aiming at supplying fuel oil to international ships sailing along the country’s shoreline.
Go4 Bunker Denmark said it will partner with Cambodian companies to develop not only the Cambodian offshore marine fuel oil business, but also related business in connection with CNPA’s offshore exploration and local services. The firm did not comment on the delay announcement.
[caption id="attachment_5083" align="alignleft" width="300"] Gas station in Cambodia[/caption] Cambodia has postponed the start of oil production by four years to 2016, backing away for the first time from its claims that oil would begin flowing by this year, Voice of America reported. The main reason is that the country lacks the necessary infrastructure not only in upstream production, but also in transport, storage and downstream. Cambodia is currently working with a number of multinational and national companies, including Chevron, to develop offshore blocks of oil, see our story. But international officials, among them experts from the International Monetary Fund, say...
Cambodia has postponed the start of oil production by four years to 2016, backing away for the first time from its claims that oil would begin flowing by this year, Voice of America reported.
The main reason is that the country lacks the necessary infrastructure not only in upstream production, but also in transport, storage and downstream.
Cambodia is currently working with a number of multinational and national companies, including Chevron, to develop offshore blocks of oil, see our story.
But international officials, among them experts from the International Monetary Fund, say that the country has much more to do to prepare for oil production and the revenue it would bring, including laws on taxation and regulation.
“We need to work with Chevron before we can get a final investment decision from the company,” said Men Den, director of operations for the Cambodia National Petroleum Authority (CNPA).
However, international companies are prepared to tap Cambodia’s anticipated new oil wealth. Danish bunker supplier Go4 Bunker Denmark on October 31 officially expanded its business into Cambodia, aiming at supplying fuel oil to international ships sailing along the country’s shoreline.
Go4 Bunker Denmark said it will partner with Cambodian companies to develop not only the Cambodian offshore marine fuel oil business, but also related business in connection with CNPA’s offshore exploration and local services. The firm did not comment on the delay announcement.
Interesting to note that they approved the chinese/Vietnamese investment on the mekong river….guess they will concentrate on hydroelectric power first