Cambodia oil exploration pact possible

Cambodia oil exploration pact possible

Thailand and neighbouring Cambodia are now discussing possible
cooperation on conducting surveys and exploration for petroleum in an
overlapping offshore area claimed by the two countries, a senior Thai
Energy Ministry official said.

Cherdpong Siriwit, Energy Ministry's permanent secretary, said the
project would benefit both countries by reducing their dependence on
petroleum from foreign countries while oil prices continue on a rising
trend.

The two countries may establish a joint independent agency to help
supervise administration and benefit sharing if negotiations succeeded,
said Mr. Cherdpong.

While the joint development area (JDA) programme signed earlier by
Malaysia and Thailand stipulates that benefits will be shared equally
between the two countries, it is still unknown at what rate any
advantages in the proposed agreement will be split between this country
and Cambodia.

The Malaysia-Thailand accord is viewed as a model of the proposed pact
between the Khmer and the Thai governments.

A feasibility study has been conducted in the overlapping area between
Thailand and Cambodia and it is believed to have a high potential for
natural gas, he said.

If agreement is reached between the countries, Thailand's PTT
Exploration and Production Public Co., Ltd. will be assigned to invest
in the activity as well as conducting a thorough survey.

Another possible cooperation between the two neighbouring countries,
according to Mr. Cherdpong, calls for a joint construction of the Stung
Nam electricity power plant with a production capacity of
approximately 230 megawatts. Thailand will also buy electricity from
the plant after its completion. (TNA)

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