kickbacks

Chevron Suspends Undersea Oil Exploration in the Khmer Sea – Friday, 20.2.2009

The Mirror, Vol. 13, No. 600

“Too much corruption and bureaucracy at the National Petroleum Authority and at the Council of Ministers of the Hun Sen government motivates the big US petroleum company Chevron to suspend exploring natural oil and gas in Block A, offshore at the sea, 150 km from the Sihanoukville Port.

Note:

In the Yellow Pages directory for Phnom Penh, the Business Listings section has only the name, address, phone numbers, and an e-mail address of the Cambodian National Petroleum Authority – but no Web address, as it is usual for the entries of enterprises and institutions, and the section “Profile” of the company does not provide any information: it is empty.

See also the Mirror of 4.12.2008:

US Oil Company Pays US$120 Million to Buy Oil Exploration License for Explorations at the Bottom of the Khmer Sea

“An official of Chevron said that the company has finished exploring oil and gas at the concession region in Block A, but cannot continue to start producing oil at this time, because there is much demand for under-the-table kickbacks, and another point is that the price of oil now dropped down dramatically. Therefore oil business activities in Cambodia will probably start again only in 2012.

“Secretary of State of the Ministry of Economy and Finance [and Permanent Vice Chairperson of the Supreme National Economic Council] Hang Chuon Narong said during a forum on Cambodia’s Future Economic Development, on Wednesday 18 February 2009, that at present, Chevron is playing a game of waiting in Cambodia after they saw that the price of oil was drooping during the last six months. Hang Chuon Narong added, ‘The accusation that there is too much corruption and bureaucracy in Cambodia is not true, and this accusation is just a pretext of Chevron to delay the production of oil from the bottom of the Cambodian sea.’

“Hang Chuon Narong continued to say, ‘At this step, Chevron already finished exploring for oil in Block A. If Chevron would continue their development now, the first oil productions would start in 2012.’ He said also that the scenario that he predicted is expected to produce income of US$200 million in the same year 2012. Hang Chuon Narong predicted that Chevron will wait longer before beginning to produce oil from the gulf in Block A, because oil prices are declining in a serious crisis both in Cambodia and in the world.

“However, an official of Chevron, who asked not to be named, said that the falling oil prices in Cambodia and in the world are not the cause for suspending the process of oil exploitation in the Cambodian offshore sea. The obstacle is that the Cambodian National Petroleum Authority and the Council of Ministers require Chevron to negotiate new documents for oil production, for oil discovered in Block A, since the previous documents were only for exploration, not production. Now, exploration is finished. Therefore, there have to be new documents for oil exploitation for production, which require to spend a lot of under-the-table kickbacks. Moreover, also because of the declining oil prices, it makes the Chevron Company reluctant to continue oil exploitation, and it might suspend its operations until 2012, to reconsider. If the Chevron Company suspends the process until 2012, Cambodia will lose the US$200 million income from oil exploitation between 2009 and 2012.’

“As for Hang Chuon Narong, he said that Chevron will continue to produce oil in 2014 or 2015, depending on oil prices – everything depends on prices of oil only [by implication denying that there is corruption and bureaucracy as additiional factors].

“The assessment by Hang Chuon Narong over activities of the Chevron Company in Block A indicates another breakdown of hope of the Chevron Company to develop Block A in the future. On 5 February 2009, the spokesperson of the Pacific Regional Office, Mr. Gareth Johnston, announced that Chevron is trying to find a solution to develop the complicated issues in Block A.

“He emphasized, ‘We are in a process to evaluate many development decisions for resources in Block A to get profits from this difficult task. Mr. Gareth Johnston did not comment on oil prices in the world, and how it impacts on the suffering of the company for the development of Block A. One barrel of oil was only US$34.92 on 18 February 2009, which shows how much the price dropped from the highest at US$145 in July 2008.

“Mr. Gareth Johnston added that at present, Chevron is not in any discussions about the setting of a date to exploit oil in Cambodia, unless a real assessment is finished.” Moneaksekar Khmer, Vol.16, #36920.2009

Newspapers Appearing on the Newsstand:
Friday, 20 February 2009

Cheat Khmer, Vol.1, #22, 20-22.2.2009

  • Mr. Sam Rainsy Told the US Ambassador [Ms. Carol A. Rodley] about Politics Violating Human Rights, the Economic Crisis, and Corruption

Deum Ampil, Vol.3, #120, 20.2.2009

  • Siam [Thailand] Sends a Delegation to Apologize for Artillery Shells Landing on Khmer Territory

Kampuchea Thmey, Vol.8, #1878, 20.2.2009

  • [12-year-old] Brother Was Killed and [11-year-old] Sister Was Raped and Murdered Cruelly [a 19 year-old boy was arrested – Kompong Cham]
  • Khmer Workers at Houses in Foreign Countries Are Valued as “House Helpers” [not as “house servants” – according to the Department of Labor of the Ministry of Labor and Vocational Training]
  • The US Embassy Donates 36 [M35A2] Trucks to the Royal Cambodian Armed Forces for the Second Time

Khmer Machas Srok, Vol.3, #348, 20.2.2009

  • [The Deputy President of the Human Rights Party and former prime minister] Pen Sovann Said that the Persons Who Have the Most Land in Cambodia Are [the Minister of the Council of Ministers] Sok An and [the commander-in-chief] Pol Saroeun

Koh Santepheap, Vol.42, #6583, 20.2.2009

  • The Head of the Government Encourages All Officials to Become Public Servants Who Serve the Citizens
  • Construction Site Is Started on the Bokor Mountain Summit, and Two National Parks [the Monivong Bokor and the Preah Suramarit-Kossamak National Parks] Are Delivered to the Sokha Hotel and the Sokimex Company [of Oknha Sok Kong – Kampot]
  • Japanese Ministry of Foreign Affairs Welcomes the First Hearing of the Khmer Rouge Tribunal

Moneaksekar Khmer, Vol.16, #36920.2009

  • Chevron Suspends Undersea Oil Exploration in the Khmer Sea
  • [Duch’s Defense Lawyer] Ka Savuth Claimed that There Are Murderers [who were chiefs of different prisons during the Khmer Rouge regime] Who Killed More People Than Duch Did, but They Are Not Called to Court

Rasmei Kampuchea, Vol.17, #4826, 20.2.2009

  • Duch’s Lawyers Are Criticized to Have Looked Down on Victims [they are criticized by the director of the Documentation Center of Cambodia, Mr. Chhang Youk, regarding their opposition to include videos provided by Vietnam as new evidence, and regarding the use of the word “Vea” [something like “it” instead of “he” in a derogatory way, used by Duch’s defense lawyers Ka Savuth, to refer to Mr. Noung Chanpal – one of the children identified in the videos provided – in Khmer, it is not used to refer to adults, and it is not used except when older people call younger people like children, then it is consider to be rude]
  • Siamese [Thai] Police Arrested 40 [illegally immigrated] Khmer Construction Workers in Chon Buri
  • The Sasakawa Peace Foundation [笹川平和財団] of Japan Presents a New Goal, Focusing on Developing Human Resources in Cambodia – [The Foundation carries also an Interview with Mr. Chhith Sam Ath, executive director of the NGO Forum for Cambodia]
  • [A Khmer historian] Michael Trane: “Dinosaurs” at Angkor Were Sculptured through Imagination

Have a look at the last editorial – you can access it directly from the main page of the Mirror.

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