Cambodia Signs a Set of Petroleum Agreements with KrisEnergy Group

The Royal Government of Cambodia reached here this morning with KrisEnergy Group the Petroleum Agreement for Offshore Oil Field Development in Block A.

The Cambodian side was represented by H.E. Aun Porn Moniroth, Senior Minister and Minister of Economy and Finance, and H.E. Suy Sem, Minister of Mines and Energy, while the KrisEnergy side was represented by Mr. Kelvin Tang, Chief Operating Officer and President of KrisEnergy Cambodia.

According to a joint press release AKP received this afternoon, both sides signed a set of agreements for Block A including Amendment and Restatement Agreement of the Block A Petroleum Agreement dated Mar. 18, 2002; Amended and Restated Petroleum Agreement for Block A; Relinquishment Agreement; Amendment No. 2 to Revised Joint Operating Agreement; Deed of Assignment and Assumption; and First Production Permit.

This is a testimony to reflect the recent great achievement of the Royal Government of Cambodia, the press release underlined.

Block A development will be the first oil field development project that will open a new area for Cambodia to become an oil producer and will lead to more intense exploration works in the remaining 5 out of 6 offshore blocks and 18 onshore blocks, it said.

Cambodia has been working hard to push forward the formalisation of Law on Petroleum Management and other regulatory to ensure the investment environment and the clarity in the private sector investment, it added.

The Cambodia Block A contract area covers 3,083 square kilometres over the Khmer Basin in the Gulf of Thailand where water depths range between 50 metres and 80 metres.

According to KrishEnergy, the expected crude oil of about 8,000 barrel per day will be sent via a 1.5 kilometre pipeline for storage to a permanently moored floating, storage and offloading vessel.

Source: Agency Kampuchea Press