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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

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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 )

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Cambodia is a net importer of petroleum products for domestic & industrial use 3 .Energy sources : Electricity Fossil Fuels ( hopefully proven reserve will be confirmed by 2004-2005 ) Renewable Energy ( potential of sources for Hydro and Solar and…) Â Â . however.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.78$7.Cambodia is crippled by its past tragedy with shortage of expert human resources and there is still a great deal to be done. energy is the fundamental factor for all sectors’ development.21 Â Â .7+( &$0%2'.$1 (1(5*< 6. .

Since the demand side of the market will be influenced by industrialization. it is common practice that the industrial as well as individual users generate their own electricity.(QHUJ\ PDVWHUSODQ  FKDLQ RI LQYHVWPHQWV Â Â Â In the last five years. Conservation and Efficiency 4 . 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. 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. growth in energy demand has been rapidly resulting in a mismatch between demand and supply. Therefore.

5 .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.*DV 0DUNHW 'HYHORSPHQW . . -The project is in anticipation of a possible discovery of natural gas offshore Cambodia. electricity generation projects and major industrial projects that would require significant electricity or gas consumption.

Diagram B .Project Consortium Agreement and PMV Services Government of Cambodia PMV Oil & Gas Developer Pipeline Construction Company IPP Power Plant Developer Industrial Park Developer Project Mandate Project Consortium Agreement PMV services to Government and Project Participants 6 .

&DPERGLDQ 3HWUROHXP . significant progress has been made. The CNPA is the primary Government body responsible for promoting investment and administering both upstream and downstream activities within the petroleum industry in Cambodia. In recent years.QGXVWU\ . 7 . however. Senior Minister SOK AN who is also the ASCOPE Council Member for Cambodia.Cambodia’s petroleum industry is in the early stages of development.The Cambodian National Petroleum Authority ( CNPA ) was established in 1998 chaired by HE. .

QGXVWU\ 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. including training. 8 . ¾Investigate potential downstream markets for natural gas in Cambodia.&DPERGLDQ 3HWUROHXP . ¾Improve capacity of Cambodian nationals. education and secondment opportunities. ¾Update and enhance regulatory framework and reliability of information and statistics. including electricity generation.

&DPERGLDQ 3HWUROHXP . 9 . onshore (new frontier). ¾Encouraging data acquisition and exploration activity: • Tonle Sap area. Cambodia. ¾Overlapping Claims Area negotiations with Thailand. offshore.QGXVWU\ Current major exploration projects in Cambodia’s oil and gas sector include: ¾Ongoing exploration & drilling program by ChevronTexaco in Block A. • Blocks B and C. E and F offshore. D.

migration) Structural framework analysis (timing) IDENTIFY PLAY TRENDS (HC GENERATION MIGRATION/TIMING RESERVOIR/SEAL) 2004 3D seismic interpretation HC potential? HC Potential? proceed IDENTIFY PLAY TYPES (PROSPECTS) FOR EACH TREND (TRAP/LOCAL PATHWAYS) # wells needed to test trends ERT DRILL WELLS recycle evaluate 2005 delineate/develop 10 . timing.Cambodia Block A Exploration Flowchart 2002 PRELIMINARY WORK existing 2D/3D data review existing well data review &13$ 2003 ERT Drill well(s) (obligation) Reprocess 3D Interpret Verify 2D data interpret BLOCK : A EXPLORATION WORK PROGRAM 3D seismic acquisition/process Basin modeling (source.

• Develop Stratigraphic model for Block A • Structural framework analysis • Process new 3-D data • 5 Exploration wells to be drilled by November 2004 11 .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.

3URJUHVV RI WKH 2&$ 1HJRWLDWLRQ EHWZHHQ &DPERGLD 7KDLODQG 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 resources for Areas II. 12 (DVW :HVW 1RUWK VW 4WU QG UG WK 4WU 4WU 4WU .These matters are to be pursued simultaneously. III & IV To agree upon a mutually acceptable delimitation of the territorial sea. continental shelf & EC zone for Area I .

2&$ 1HJRWLDWLRQV There were only two OCA meetings during 2003. a Senior Officials meeting (January) and a Joint Technical Working Group meeting (December). 13 . Endeavours were also made to agree a Road Map for future discussions. The meetings were very positive and there were mutual exchanges of materials and proposals. It is anticipated that the next OCA meeting will be a further JTWG meeting in late April 2004.

+\GURFDUERQ SRWHQWLDO RI 7RQOH 6DS $UHD Â Â . Play type similar to the Nam Phong Gas Field of Thailand can be expected around the Paleozoic Basin in the east. 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. 14 . As in the Supanburi Oil field of Thailand. crude oil may be expected with the former type of basins.Two types of sedimentary basins exist around Lake Tonle Sap.

E & F are open for PSC negotiation  Prospect Mebon & Lolei of the Eastern Tertiary Basin m m m m m m m m aiiim llaii nC nC n d a 72 d a 72 7 7 d dii 7 7 7 7 bo 19 bo e 19 am am ii e Ca Liiin Ca Liiin 09°N 09°N 09°N 15 . D.8QGLVSXWHG %ORFNV %&'( ) 2IIVKRUH &DPERGLD The Cambodian National Petroleum Authority 102°E 102°E 102°E 103°E 103°E 103°E 104°E 104°E 104°E im bod an Claim Cambodian Cla m Cambodiian Clai m bodian Clai Line 1972 Line 1972 Line 1972 Line 1972  11°N 11°N 11°N 11°N 11°N 11°N Jo Jo iintt n De De ve ve llop op me me n ntt Ar Ar ea ea -.E Ea as stte ern rn Liim Lm iitt BLOCK E BLOCK E BLOCK F BLOCK F BLOCK D BLOCK D Koh Prins Koh Prins Koh Prins             Koh Tang Koh Tang Tang Ilot Veer Ilot Veer Ilot BLOCK C BLOCK C 10°N 10°N 10°N 10°N 10°N 10°N       Poulo Wai Poulo Wai Poulo Wai       BLOCK A BLOCK A                   ne )) ne Lii nlly L ny an O an O dii ks d ks e e M lloc M oc e B ve iiv m B m att ca eu iic lleu nd ttrro nd o II e Pe ((P       BLOCK B BLOCK B             e iie ev rrev B B ne ne g g Lii L Block B is under PSC negotiation with a few companies  Block C.

16 . 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.2WKHU &13$ $FWLYLWLHV 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.

.This situation is likely to continue for the immediate future.6HFXULW\ RI 2LO 6XSSO\ -The key issue facing Cambodia in terms of Security of Oil Supply is that there is presently no indigenous production of oil within Cambodia. Singapore and Vietnam. primarily Thailand. The vast majority of petroleum products into Cambodia is ultimately sourced from the Middle East.Cambodia is reliant on imports of refined oil from regional sources. . 17 .

18 . and ¾ Continued reliance on diesel fuel for the majority of domestic electricity generation.6HFXULW\ RI 2LO 6XSSO\ Cambodia also expects that over the next decade there will be: ¾ A strong increase in domestic demand for oil. 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.

Fuel Switching : encouraged and implemented in electricity generation to have dual fuels transferable / or switch to gas-firing stations. 19 .Commitment to information sharing : in order to ward off speculation and irrational behavior * Timely and strategic information exchanges between ASEAN +3 .6+2577(50 0HDVXUHV IRU 2LO 6XSSO\ 'LVUXSWLRQ 0DQDJHPHQW .Demand / Consumption Restraint : * Persuasion and public information of understanding * Administrative and compulsory measures * Allocation and rationing schemes .

6KRUW 0HGLXP 7HUP 0HDVXUHV IRU 2LO 6XSSO\ 'LVUXSWLRQ 0DQDJHPHQW 6WUDWHJLHV ¾Progressing draft Law on Petroleum. ¾We are in dire need to foster cooperation in ASEAN+3 in oil supply disruption management ¾Cambodia supports the “ Hiranuma initiative “ . which may include National & Commercial stockpiling provisions.Initiatives for the improvement of natural gas development .Initiative for development of oil stockpiling ( National & Commercial ) .Development of Joint Studies on Asian Oil Market .Creation of Emergency Network ( CERM ) .Initiatives for the improvement of energy Conservation and Renewable Energy 20 .

/RQJWHUP 6WUDWHJLHV In the long term. ¾Encouraging fuel-switching and reducing reliance on oil products.consists of Trans-ASEAN Gas Pipeline ( TAGP ) and ASEAN Power Grid ( APG ) 21 . oil and Renewable…) ¾ Supporting the ASEAN Energy Network . including developing alternative sources of electricity generation ( Diversified 5-fuel strategy : Gas. Coal transferable to gas. Cambodia’s key strategies for ensuring security of oil supply are: ¾Promoting development and production of Cambodia’s national petroleum resources. Hydro.

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./RQJWHUP 6WUDWHJLHV The CNPA is also taking a variety of other steps to ensure security of oil supply: ¾Diversification of oil supply sources. 22 . to the extent practicable.

An important component of Cambodia’s long-term strategy with respect to Security of Oil Supply is therefore to promote diversification of energy sources.$OWHUQDWLYH (QHUJ\ 6RXUFHV At present. 23 . the principal source of electricity generation in Cambodia remains diesel fuel.

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.$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). ¾Promoting solar and wind power. especially in rural and remote areas. 24 .

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 .&RQFOXVLRQ 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.

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