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Presented by H.E. Te Duong Tara

Chairman, ASCOPE National Committee for Cambodia
Director-General, Cambodia National Petroleum Authority
At
IEA/ASEAN/ASCOPE Workshop on
“ Oil Supply Disruption Management Issues “
5 – 8 April 2004, Siem Reap, Cambodia 1
+2:72&23(:,7+7+(*/2%$/ 5(*,21$/
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 - 20 yrs ago, the developing
economies of the Asian Pacific (+
India & China ) had a combined
GDP = 1/5 of the US
 - In 20 yrs from now, the US IEA
estimates this region’s economy will
have grown= ¾ the size of the US
 - Fuel for poverty alleviation,
economic growth, energy security &
environmental conservation ( our 4
main objectives )

2
 7+(&$0%2',$1(1(5*<6,78$7,21
 - Cambodia is crippled by its past tragedy with shortage of expert
human resources and there is still a great deal to be done, however,
energy is the fundamental factor for all sectors’ development.
 - Energy sources :
Electricity
Fossil Fuels ( hopefully proven reserve will be confirmed by 2004-2005 )
Renewable Energy ( potential of sources for Hydro and Solar and…)
 - At present : only 5% and 10% of Cambodia’s population has access
to networked power & the RGC is strongly committed to make
significantly & positively changes in this matter.
 Cambodia is a net importer of petroleum products for domestic &
industrial use
3
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 In the last five years, growth in energy demand has been rapidly
resulting in a mismatch between demand and supply. Therefore, it is
common practice that the industrial as well as individual users generate
their own electricity.
 Since the demand side of the market will be influenced by
industrialization, with surely get a boost as there will be affordable and
reliable power supply…a demand in the area of electricity will
approximately be 750MW to 800MW by 2010 included a spinning
reserve of 15 to 20% to the system, crucial in order to secure the
reliability of supply
 Now Cambodia requires a structured and well documented energy
strategy : detailed Energy Master-plan that support an industrialization
capacity : Sustainability, Conservation and Efficiency

4
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- The CNPA is also undertaking a significant project to
investigate possible commercial markets for natural gas
in Cambodia.
- The project is focused on coordinated development of
gas transmission pipelines, electricity generation
projects and major industrial projects that would require
significant electricity or gas consumption.
-The project is in anticipation of a possible discovery of
natural gas offshore Cambodia.

5
Diagram B - Project Consortium Agreement and PMV Services

Government of Cambodia

PMV

Pipeline Construction IPP Power Plant Industrial Park

Oil & Gas Developer Company Developer Developer

Project Mandate

Project Consortium Agreement

PMV services to Government

and Project Participants6
&DPERGLDQ3HWUROHXP,QGXVWU\
- The Cambodian National Petroleum Authority ( CNPA )
was established in 1998 chaired by HE. Senior Minister
SOK AN who is also the ASCOPE Council Member for
Cambodia. The CNPA is the primary Government body
responsible for promoting investment and administering
both upstream and downstream activities within the
petroleum industry in Cambodia.
- Cambodia’s petroleum industry is in the early stages of
development. In recent years, however, significant
progress has been made.

7
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The CNPA is involved in a diverse range of activities
and projects in Cambodia that are intended to:
¾Promote investment in Cambodia’s upstream oil and
gas sectors.
¾Investigate potential downstream markets for natural
gas in Cambodia, including electricity generation.
¾Update and enhance regulatory framework and
reliability of information and statistics.
¾Improve capacity of Cambodian nationals, including
training, education and secondment opportunities.
8
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Current major exploration projects in Cambodia’s oil and
gas sector include:
¾Ongoing exploration & drilling program by
ChevronTexaco in Block A, offshore.
¾Overlapping Claims Area negotiations with Thailand.
¾Encouraging data acquisition and exploration activity:
• Tonle Sap area, onshore (new frontier).
• Blocks B and C, D, E and F offshore, Cambodia.
9
 Cambodia Block A Exploration Flowchart

2002 PRELIMINARY WORK

&13$
existing 2D/3D existing well
data review data review

ERT

2003 Drill well(s)

(obligation)
BLOCK : A
Reprocess 3D Verify 2D data
Interpret interpret

EXPLORATION
WORK PROGRAM 3D seismic acquisition/process Basin modeling
(source, timing, migration)
Structural framework
analysis (timing)

IDENTIFY PLAY TRENDS

(HC GENERATION
MIGRATION/TIMING
RESERVOIR/SEAL)
2004 3D seismic interpretation

HC
HC potential?
Potential?

proceed

IDENTIFY PLAY TYPES (PROSPECTS)

FOR EACH TREND
(TRAP/LOCAL PATHWAYS)

# wells needed to test trends

ERT recycle

DRILL WELLS

evaluate

2005
delineate/develop 10
Block A Exploration – 2003
2003 – IDENTIFY PLAY TRENDS
• Drilled one exploration well
(Kdang Ngea #1)
• Attempted to spud the
second well (Angkea Sel #1)
• Reprocess existing 3-D
datasets.
• Interpret existing 2-D & 3-D
seismic data
• Acquired 2580 km2 of new
3-D data
• Review and upgraded
hydrocarbon charge and
migration models.
• Develop Stratigraphic model
for Block A
• Structural framework analysis
• Process new 3-D data
• 5 Exploration wells to be drilled
by November 2004 11
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MoU signed between the RGC & the
RGT regarding the Area of their
OMCs to the Continental Shelf 18
June 2001
To conclude an Agreement on Joint
Development of the hydrocarbon
(DVW resources for Areas II, III & IV
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To agree upon a mutually acceptable
delimitation of the territorial sea,
continental shelf & EC zone for
VW QG UG WK
Area I
4WU 4WU 4WU 4WU - These matters are to be pursued
simultaneously.
12
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There were only two OCA meetings during 2003, a
Senior Officials meeting (January) and a Joint Technical
Working Group meeting (December).
The meetings were very positive and there were mutual
exchanges of materials and proposals. Endeavours
were also made to agree a Road Map for future
discussions.
It is anticipated that the next OCA meeting will be a
further JTWG meeting in late April 2004.

13
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 - Two types of sedimentary basins
exist around Lake Tonle Sap. The
sedimentary basins with a major
axis running northwest – southeast
believed to have been formed in the
Tertiary and the basin running east
to west believed to have been
formed in the Mesozoic – Paleozoic.
 As in the Supanburi Oil field of
Thailand, crude oil may be expected
with the former type of basins. Play
type similar to the Nam Phong Gas
Field of Thailand can be expected
around the Paleozoic Basin in the
east.
14
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The Cambodian National Petroleum Authority

 Block B is under PSC

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102°E 103°E
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15
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Other CNPA plans with respect to oil and gas exploration and
production include:
Encouraging domestic provision of international-standard
logistics supply base and support services to upstream
petroleum industry, including establishment of local
operations by international companies.
Feasibility study into the possibility of developing domestic
refining capabilities.
Cambodia also hopes to join the World Petroleum Congress in
the near future.

16
 6HFXULW\RI2LO6XSSO\
-The key issue facing Cambodia in terms of Security of
Oil Supply is that there is presently no indigenous
production of oil within Cambodia.
- Cambodia is reliant on imports of refined oil from
regional sources, primarily Thailand, Singapore and
Vietnam. The vast majority of petroleum products into
Cambodia is ultimately sourced from the Middle East.
- This situation is likely to continue for the immediate
future.

17
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Cambodia also expects that over the next decade there
will be:
¾ A strong increase in domestic demand for oil, and
¾ Continued reliance on diesel fuel for the majority of
domestic electricity generation.
The combination of increasing demand and reliance on
external supply sources will increase the potential
adverse impact on the national economy from any
disruption to oil supply.

18
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- Commitment to information sharing : in order to ward
off speculation and irrational behavior
* Timely and strategic information exchanges between
ASEAN +3
- Demand / Consumption Restraint :
* Persuasion and public information of understanding
* Administrative and compulsory measures
* Allocation and rationing schemes
- Fuel Switching : encouraged and implemented in electricity
generation to have dual fuels transferable / or switch to gas-firing
stations.

19
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¾Progressing draft Law on Petroleum, which may include
National & Commercial stockpiling provisions.
¾We are in dire need to foster cooperation in ASEAN+3 in oil
supply disruption management
¾Cambodia supports the “ Hiranuma initiative “
- Creation of Emergency Network ( CERM )
- Initiative for development of oil stockpiling ( National & Commercial )
- Development of Joint Studies on Asian Oil Market
- Initiatives for the improvement of natural gas development
- Initiatives for the improvement of energy Conservation and Renewable Energy

20
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In the long term, Cambodia’s key strategies for ensuring
security of oil supply are:
¾Promoting development and production of Cambodia’s
national petroleum resources.
¾Encouraging fuel-switching and reducing reliance on oil
products, including developing alternative sources of
electricity generation ( Diversified 5-fuel strategy : Gas.
Coal transferable to gas, Hydro, oil and Renewable…)
¾ Supporting the ASEAN Energy Network
- consists of Trans-ASEAN Gas Pipeline ( TAGP ) and ASEAN
Power Grid ( APG )

21
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The CNPA is also taking a variety of other steps to
ensure security of oil supply:
¾Diversification of oil supply sources, to the extent
practicable.
¾Encourage more investments in Exploration,
Development & Production of Oil & Gas inland &
Offshore
¾Examining and evaluating options for development of
domestic oil grass-root refining capability.

22
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At present, the principal source of electricity generation
in Cambodia remains diesel fuel.
An important component of Cambodia’s long-term
strategy with respect to Security of Oil Supply is
therefore to promote diversification of energy sources.

23
 $OWHUQDWLYH(QHUJ\6RXUFHV
Cambodia is seeking to reduce its reliance on oil as a
source of energy by:
¾Promoting hydro-electricity generation projects
(including 180MW Kampot project).
¾Implementing strategies to develop natural gas as a
major input for energy generation.
¾Examining the viability of coal ( clean technology and
transferable to gas ) as source of fuel.
¾Promoting solar and wind power, especially in
rural and remote areas.

24
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CNPA is also seeking to:
¾Include provisions in PSCs and other relevant
regulatory instruments requiring compulsory supply of
oil for domestic consumption in Cambodia in the event
of national emergencies or supply shortages.
¾Cambodia accords full support to regional energy
security enhancing efforts such the Asean Emergency
Petroleum Sharing Scheme under the 1986 APSA
¾Promote and participate in the ASEAN oil stockpiling
programme.

25