Optimism is growing less cautioues in Cambodia after companies tested two discoveries earlier this year.
Observers believe that as many as seven to 10 wells may be drilled in Cambodian waters of the Gulf of Thailand in 1994-95 if some 12,000 line km of seismic surveys being shot by the present round of explorers prove encouraging.
This is in addition to the 8,500 line km collected since 1985 by French, Chinese, Polish, and Russian geological surveys and companies including Amoco, Idemitsu, Elf, Tenneco, Marine Associates, and Canadian Reserve.
Contract terms are inviting for exploration companies, and the blocks are north and northeast of lucrative gas/condensate fields in Thai waters. East-West Center, Honolulu, estimated potential recovery at a most likely 1.5-3.5 tcf of gas and 50-100 million bbl of oil, but the numbers were based on data mostly from adjoining areas.
THREE GROUPS AT WORK
A few foreign companies that had taken onshore concessions dropped out last year, but three groups of companies are exploring offshore.
A group led by Premier Oil Pacific Ltd., a unit of Premier Consolidated Oilfields plc, is starting the 1 Kaoh Tang wildcat projected to 3,609 in on 4,770 sq km Block 4. Other group members are Idemitsu Oil & Gas Ltd. of Japan and Ampolex of Australia.
Cambodia Petroleum Exploration Co. (CPEC), a joint venture of Japan Petroleum Exploration Co. and Nissho Iwai Corp., plans to drill a second well soon on 3,670 sq km Block 3. The first well on the block indicated an oil and gas reservoir at 2,500 in, but flow rates were not disclosed (OGJ, Feb. 21, p. 42).
Enterprise Oil plc, London, gauged a gas/condensate discovery on Block 2. Its 1 Angkor wildcat flowed 4.7 MMcfd of gas and 180 b/d of condensate from one of four zones. The group, which also holds rights to Block 1, is analyzing the results. Other members are Cie. Europeene des Petroles of France and British Gas plc.
The blocks being explored are in the Khmer trough, just east of the Pattani trough which produces most of Thailand's hydrocarbons.
SUPPLY, DEMAND
Cambodia, which has neither oil storage nor refining capacity, uses about 3.5 million bbl/year.
All of that is imported from Singapore, Thailand, Malaysia, and Viet Nam. Long term supplier Russia ceased shipping subsidized oil in 1991.
The Cambodian government recognizes the importance of oil to the economy for reconstruction, and many regard the production sharing contract terms as quite reasonable in comparison with those of other Southeast Asian countries. The contracts have taken into account the explorers' needs for high oil recovery favorable sharing arrangements, freedom to repatriate profits, and reasonable tax breaks.
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