Cambodia has begun extracting its first crude oil from fields in the Gulf of Thailand, in a venture between Singapore's KrisEnergy Ltd. and the government, both parties said on Dec. 29, bringing an end to years of delays.
Prime Minister Hun Sen announced the news on social media while KrisEnergy said the concession started production on Dec. 28 and would progress in phases once new wells were commissioned and completed.
"I ... am pleased to inform all Cambodians about the start of Cambodia's first oil production in the long-awaited Block A," Hun Sen said on his Facebook page.
Kelvin Tang, CEO of KrisEnergy's Cambodian operations, called the event "an important strategic milestone" for the company.
"There has been a steep learning curve for all involved," Tang added in a statement.
Cambodia and Singapore-listed KrisEnergy signed a pact in 2017 to develop 3,083 sq km (1,190 sq miles) of the Khmer Basin in the Gulf of Thailand known as Block A.
Cambodia has struggled to develop its oil fields as few companies were willing to invest in the area following a global oil price slump in 2014.
KrisEnergy, which has been a partner in the project for more than a decade, bought out Chevron Corp.'s operating interest in Block A in 2014 for $65 million.
Chevron had found oil in the block in 2004 but failed to strike a development agreement with Cambodia, which has a 5% stake in the venture with KrisEnergy.
Earlier, KrisEnergy had anticipated oil production from the Aspara Field to start some time last year.
On Dec. 29, the company said development of that field would proceed in phases, allowing time to mitigate risks as well as collect and assess data, since the production performance of the basin is unproven.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Third Week in a Row
2024-10-04 - The oil and gas rig count fell by two to 585 in the week to Oct. 4.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks
2024-10-11 - The oil and gas rig count rose by one to 586 in the week to Oct. 11. Baker Hughes said the total count was still down 36 rigs or 6% from this time last year.
US Drillers Cut Oil, Gas Rigs for Second Week in a Row
2024-11-22 - The oil and gas rig count fell by one to 583 in the week to Nov. 22, the lowest since early September. Baker Hughes said that puts the total rig count down 39, or 6% below this time last year.
VTX Energy Quickly Ramps to 42,000 bbl/d in Southern Delaware Basin
2024-09-24 - VTX Energy’s founder was previously among the leadership that built and sold an adjacent southern Delaware operator, Brigham Resources, for $2.6 billion.
Hurricane Helene Shuts in Nearly 30% of GoM Crude Production
2024-09-25 - Bumped up to hurricane classification on Sept. 25, Hurricane Helene has shut in 29% of crude and 17% of natural gas production in the Gulf of Mexico as it nears landfall in Florida tomorrow.