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Chevron To Sell Shares of Cambodian Offshore Oil and Gas

Eight years after Chevron found crude oil off Cambodia’s coast, the American company has yet to begin full production. In remarks in April, Prime Minister Hun Sen said he wants the oil giant to begin production by 2012 or risk losing its rights.

A Singaporean company has agreed to a $65-million deal with Chevron’s local Cambodian subsidiary to take over shares in an offshore block of oil and gas.

Under the deal, KrisEnergy Ltd would boost its shares in a section of the Gulf of Thailand, called Cambodia Block A, from about 25 percent to more than 50 percent—giving it an estimated 5.4 million barrels of oil once production begins.

Chevron has had those shares for 12 years, but failed to reach a deal with the government over extraction. The two sides have so far agreed to the principle terms of sale for the shares, a spokesman for Chevron Overseas Petroleum (Cambodia) Ltd told VOA Khmer.

Both companies have submitted documents to the Ministry of Mines and Energy over the agreement.

Meng Skatheara, secretary of state for the ministry, told VOA Khmer Chevron still retains its status as an operator in Cambodia, meaning it could potentially explore for more petroleum resources in the future.