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).
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