Oil and Gas Revenue Management Options for Cambodia

At a moderate rate of production, Cambodia’s oil and gas revenue could provide revenues of around $500 million a year for 20-25 years, and is estimated to peak in revenue at between $1.7 billion and $6 billion per annum for a small number of years. However, a recent drop in the value of oil and gas, which is forecast to continue into the foreseeable future, largely due to a number of large gas projects commencing production across the world, may have reduced the interest and profitability in developing Cambodia’s oil and gas reserves. This may have played a role in Chevron’s recent sale of their production rights, at a loss of approximately $100 million. Licenses for exploration and production of Cambodia’s oil and gas wealth are divided into blocks, as shown in figure 1, below. Block A is so far the most advanced in terms of exploration, while the sovereignty of a number of blocks, referred to as Overlapping Claims Areas (OCAs) is currently under dispute between Cambodia and Thailand(download).

The Impacts of Dam Construction on Cambodia’s Environmental and Socio-Economic Development

Approximately 65% of the Cambodian population still lacks access to reliable electricity. They are more likely to be poor and have poorer health status resulting from this situation. In addition, electricity is commonly cited as a major barrier for business and industrial development. To sustain economic growth, reduce poverty and increase the welfare of the people, and reduce air pollution from oil, coal and traditional energy, Cambodia requires more efficient and clean energy generated from hydropower plants. However, the construction of hydropower plants can result in, serious social and environmental consequences in the long run. Although hydroelectricity can be viewed by some as a sub-optimal solution, it is arguably the best option(download).