The Cambodian cabinet approves the draft "Petroleum Law"
The draft of Cambodia's "Petroleum Law" was passed at the Cambodian Cabinet meeting on April 5, local time.
A press notice issued by the Ministry of Cabinet Affairs of Cambodia stated that the purpose of drafting the “Petroleum Law” is to effectively manage Cambodia’s oil production, ensure the continuous and effective development of oil resources, promote the country’s economic development and protect the long-term interests of the country and the people.
According to the circular, the draft "Petroleum Law" has 9 chapters and 72 clauses, which will regulate all oil resource development activities in Cambodia’s territory and territorial waters, aiming to cooperate with Cambodia’s official oil exploitation next year, covering the upstream and downstream oil industries, including prospecting, exploitation, and refining. , Distribution, storage, import and export, etc.
In August 2017, the Cambodian government signed an oil agreement with Singapore’s Kris Energy to exploit 1A and 1B oil fields off the coast of Sihanoukville. The Ministry of Finance and Economics of Cambodia predicts that oil fields 1A and 1B can produce at least 30 million barrels of crude oil in the next 9 years.
According to the Cambodian government spokesperson Pasipan on social media, the government started to draft the "Petroleum Law" in 2006. At that time, the Ministry of Industry, Minerals and Energy had not "divided into two" and the National Petroleum Agency was under the jurisdiction of the Cabinet Affairs Department.
Passipan said that the time-consuming drafting of the "Petroleum Law" is the government's cautious attitude towards the development of oil resources and to ensure that the government has the ability to properly manage oil exploration.