COVID-19 poses challenge for extraction of Cambodia’s first oil

• 22 April 2020
• Local News
• 2186 Views

The impact of COVID-19 on the first oil extraction in Cambodia will be discussed and evaluated further after the virus crisis has ceased, said H.E Cheab Sour, Director General of the Department of Petroleum, at a press conference on the progress and continued working direction of the Ministry of Mines and Energy on the morning of 21 April 2020.

In response to a question from a local journalist on the impact of COVID-19 on global oil prices, he said, “the virus affects everyone in general, including individuals and offshore projects. Therefore, at this stage, we are not yet commenting on this issue”

“So, we need some time, when the COVID-19 is relieved, we will have a meeting with them and we will be able to assess the impact.”

Related to the oil price decline, the director said: “COVID-19 has caused the price of oil to fall down… due to reduced demand”. “The drop in oil price will lead to a loss of trust in investment especially in financing projects in the oil sector”.

Samdech Techo Hun Sen announced that oil production in Cambodia would begin from the Apsara oilfield in Cambodia’s offshore Block A by 2020. However, the exact date has not yet been confirmed.

Cambodia has three areas for oil exploration; the sea, the mainland, and the overlapping border between the Cambodian border and the Gulf of Thailand. The oil blocks in the maritime area are divided into six offshore blocks (A–F), and there are nineteen onshore (on the mainland) blocks (I–XIX). Whereas other four blocks are situated in an overlapping claims area (OCA) that is contested with Thailand. Among these, the offshore Block A is likely to be the first field to produce oil. (Read more)

• Economy and Finance
• Energy and Environment