December 29, 2020, 06:09 PM
Cambodia has extracted its first drop of crude oil in the Gulf of Thailand, the country's Prime Minister Hun Sen proclaimed, AFP reported.
The venture, which took place in an area off the southwestern coast of Sihanoukville, was done with Singapore-based investment holding company KrisEnergy.
According to a press release by KrisEnergy, oil began flowing from the first of five planned drilling wells at Apsara field on Monday, Dec. 28.
Production is expected to reach 7,500 barrels a day in February once all five wells come online.
"Blessing" and not a "curse" for Cambodia
Hun Sen hailed the extraction as a "blessing" in a Facebook post, and called it the first step for Cambodia towards improving its national capabilities.
In response to concerns about the country's management of its newfound revenue -- estimated in 2017 to be at least US$500 million (S$660 million) -- he said: "It is not a curse like it has been cited by some ill-will people."
Besides Cambodia, other Southeast Asian countries with oil reserves include Indonesia, Malaysia, Thailand, Vietnam and Brunei.Oil field originally discovered by Chevron
AFP further reported that the oil field had originally been discovered by U.S. company Chevron in 2005.
However, the Cambodian government and Chevron were unable to reach an agreement on revenue-sharing, resulting in the U.S. company selling its stake to KrisEnergy in 2014.
KrisEnergy currently holds a 95 per cent stake in the block where the oil is being extracted while the Cambodian government holds the remainder.
CEO of KrisEnergy, Kelvin Tang, further added that the drilling was "a momentous event for the Cambodian people and an important strategic and operational milestone for KrisEnergy."
Thanking the Cambodian government for their help in amidst the Covid-19 pandemic, he added:
"In the context of the COVID-19 pandemic in 2020, progressing Apsara to first oil has been a tremendous achievement and a testament to the determination of the KrisEnergy team and the strong cooperation of our contractors and suppliers.
The cross-border logistics of mobilising personnel and equipment to execute this development safely during this time of COVID-19 would not have been possible without the expeditious and engaged support of the Royal Government of Cambodia."
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Top image from Samdech Hun Sen/Facebook
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