Cambodia has awarded its first exploration contract in almost 20 years.
Enterprise Oil Exploration Ltd., London, in a 60-40 partnership with Cie. Europeene des Petroles, France, acquired Blocks I and II, each covering 5,000 sq km, in the Gulf of Thailand about 93 miles southwest of the Cambodian port of Kompong Som.
WHAT THE CONTRACT COVERS
The agreements cover an initial period of 3 years with an option to extend another 3 years, as well as a production agreement covering 30 years from the start of the agreement.
Seismic acquisition will start next year and drilling about 2 years later.
There is almost no infrastructure to support an offshore exploration campaign, and much of the Enterprise/CEP operation will be supported from outside Cambodia.
The Cambodian offshore has been divided into seven blocks, and competition for the acreage is lively. The government will announce other awards to western companies although U.S. companies are excluded from Cambodia, as is the case with Viet Nam.
Most of onshore Cambodia also has been parceled up into blocks and is available for exploration.
ENTERPRISE STRATEGY
Enterprise said that Cambodia long has been a target for the company, which has been very active in Southeast Asia.
The company had pursued acreage in the country for a number of years, which had helped it in acquiring the first offshore permits.
The acquisition was part of the company's international strategy of being an early entrant into new areas, particularly those where exploration activity had been held back for political reasons.
Enterprise and CEP are also partners in two blocks off Viet Nam, where four wells have been drilled.
In addition, the government in Laos recently approved an agreement for British Gas plc to acquire a farmout on Enterprise's production sharing contact in the Savannakhet area of Laos. Enterprise is about to start seismic acquisition.
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