Oil is lifeblood of the industrialised nations. Oil has become the world’s most important source of energy since the mid-1950s. Its products underpin modern society, mainly supplying energy to power industry, heat homes and provide fuel for vehicles and aeroplanes to carry goods and people all over the world.
Oil and gas have been found on Cambodian territory. No commercial extraction has yet begun, although steps are being taken towards production from an offshore oil field. The oil consumption has been growing – Cambodia imported 2.55 million tons of petroleum in 2015, a 64% jump from 2014.
Oil Drilling in Cambodia, First Drop of Oil, 29th December 2020, Cambodia Time
However, Cambodian premier Hun Sen announced upon December 29th 2020 that the Cambodia had extracted its first drop of crude oil from its waters.
The company expects a peak production rate of 7,500 barrels a day from an initial phase – a modest amount compared with Cambodia’s oil-producing neighbours Vietnam and Thailand.
KrisEnergy currently holds a 95 per cent stake of the block where the oil was taken from, while the government holds the rest.
The company expects a peak production rate of 7,500 barrels a day from an initial phase – a modest amount compared with Cambodia’s oil-producing neighbours Vietnam and Thailand.
Kelvin Tang, CEO and president of KrisEnergy’s Cambodian operations, said Apsara’s first oil marked a 10-year journey from when KrisEnergy initially became a partner in Block A and a three-year period since the firm signed with the Cambodian government the petroleum agreement to launch this project.
Block A, covering 3,083 square-km, is one of several oilfields discovered off Cambodian territorial waters in Preah Sihanouk province, situated in the southwest of capital Phnom Penh.
Block A is estimated to have some 30 million barrels of recoverable oil reserves, according to KrisEnergy.