The Cambodia government has cancelled two concessions for offshore oil, Block B and Block F, held by Malaysia’s Resourceful Petroleum.
According to Meng Saktheara, secretary of Ministry of Mines and Energy, the company did not perform according to the obligations stated in their petroleum agreements (PA).
Saktheara said feasibility studies for both blocks were being conducted by the Malaysia-owned company. The government had signed an agreement with Thailand’s PPTEP and Resourceful Petroleum Limited for Block B in 2005 and another agreement for Block F with China’s CNOOC in 2007. However, both blocks had been transferred to Resourceful Petroleum 2013.
“The cancellation of the PAs is purely contract-based and has nothing to do with the draft petroleum law. The cancellation sends a strong message to the industry that we are capable and serious in handling performance of contracts. Companies must abide by legal terms and provision set in their PA,” Saktheara added.
The bidding for the two blocks will be opened for other companies very soon.
Cambodia’s Ministry of Mines and Energy is close to finalising new oil and gas exploration laws to replace the legislation enacted in 1990.