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Sok An Clarified the US$28 Million Tea Money from the Total Company – Friday, 25.6.2010

The Mirror, Vol. 14, No. 670

Note:

Apologies – delays of the publication may occur until 17 July 2010 because of my international travel.

Norbert Klein
At present still in Brussels/Belgium at the meetings of ICANN – the Internet Corporation for Assigned Names and Numbers, but soon again on the way – to Canada. I am not yet sure when I will be able to send the Saturday installment – maybe tomorrow, maybe only later.

“The Minister of the Council of Ministers, Deputy Prime Minister Sok An, officially provided a written clarification regarding oil and gas issues, as well as the US$28 million paid by Total after a Sam Rainsy Party parliamentarian from Phnom Penh, Mr. Son Chhay, had asked seven questions.

“According to the letter of Mr. Sok An sent to the president of the National Assembly, Mr. Heng Samrin, on 9 June 2010 and released on 24 June 2010 to respond to Mr. Son Chhay’s questions, it explains that the Royal Government never provided licenses to any oil company for exploitation, but signed oil deals to allow companies to study and explore oil and gas resources. Companies with which such oil deals have been made by the Royal Government are:

Campex,
Chevron,
CNOOC [China National Offshore Oil Corporation],
CPHL Petroleum,
Enterprise Oil,
GS-Caltex,
Idemitsu,
JCL Petroleum,
JOGMEC [Japan Oil, Gas and Metals National Corporation],
Kris Energy,
Kuwait Energy,
Lunin,
Medco,
Mitsui Oil Exploration Company,
Petrovietnam,
Polytec Petroleum Corporation,
Premier Oil,
PTTEP,
Resourceful Petroleum,
Singapore Petroleum Corporation,
Total,
Woodside.

Some of these companies had given up and left, because the oil and gas resources they were researching cannot be developed commercially.

“Responding to the questions that Mr. Son Chhay had asked, ‘What policies allow companies to gain profit before they get exploitation licenses?’ – Mr. Sok An said that these companies are qualified, they have sufficient techniques and resources to explore, they have proper programs responding to the needs for exploration, care about the environment, have the ability to enter into competition, they can provide appropriate benefits to Cambodia, and they meet other points stated in the regulations for oil exploration from 1991.

“Responding to the questions, ‘What payments do they have to make before they get a licenses? What payments have to be made into the state budget? If there are such payments, since when have such payments been implemented?’ – Mr. Sok An said that the companies do not have to pay all money before they receive oil deals. But when a company gets a deal, they might pay some money, like reward money for signing, and money for a social development foundation. But they are not obliged to pay it, and it depends on negotiations based on the expected oil potential. In the case that there is money paid, like reward money for signing, paid into the state budget, the Ministry of Economy and Finance and the National Petroleum Authority deposits it into an account at the National Bank of Cambodia. The money is the income from oil for the Royal Government of Cambodia to be used, and the use of the money is not dependent on the companies signing the oil deals, like in the case of the social development foundation. The money for the social development foundation is also deposited into an account at the National Bank of Cambodia, but before the money can be taken out to be spent on any projects, there needs to be a discussion with company that signed the oil deal, as, in general, that money is used to serve the development in areas designated when the oil deal was signed.

“Another question is, ‘Where has the US$28 million payment of the Total company been used, and where has this been published? What policies were used to determine the amount of US$28 million?

“Mr. Sok An responded that the amount of money paid by Total is US$26 million (US$20 million as reward money for signing, and US$6 million was for the social development foundation). The rest of US$2 million is for processing the administrative work which the company volunteered to pay for the long term. No money has been paid to any individual who is an official of the Royal Government. The government manages and uses the income from the oil and gas resources through the same entrance and exit [that is the national budget]. As for the social development fund into which the oil companies paid, it is not so much and it depends on the potential of the resources; the foundation had been established in 1995.

“Mr. Sok An made these clarifications in response to the Sam Rainsy Part parliamentarian, Mr. Son Chhay, who had sent a letter with questions on 7 May 2010, through the National Assembly.” Khmer Amatak, Vol.11, #784, 25.6.2010

Newspapers Appearing on the Newsstand:
Friday, 25 June 2010

Deum Ampil, Vol.4, #513, 25.6.2010

  • The Prime Minister Absolutely Firmly Ordered that No Primary Schools and Health Centers Should be Sold [especially those in Phnom Penh – previously, some primary school directors and heads of health centers had sold or relocated institutions for their own benefit]
  • The [SBJ] Bank of Vietnam Invests US$3 Million in Gold Minerals Development in Cambodia
  • More Than 6,000 Families at the Northeast Received Free Treatments from American Medics

Kampuchea Thmey, Vol.9, #2284, 25.6.2010

  • Samdech Dekchor Hun Sen Called On Citizens to Obey the Traffic Laws during the Inauguration of the Sky Road [in Phnom Penh]
  • Australia Has the First Female Prime Minister [Ms. Julia Gillard] after a Grim Party Revolt

Khmer Amatak, Vol.11, #784, 25.6.2010

  • Sok An Clarified the US$28 Million Tea Money of the Total Company

Khmer Machas Srok, Vol.4, #690, 25.6.2010

  • [Prime Minister] Hun Sen Must Cooperate with the Federal Bureau of Investigation [FBI] to Arrest the Persons Who Made the Grenade Attack in Front of the [former] National Assembly, to Be Convicted like [the Cambodian Freedom Fighters leader] Chhun Yasith [convicted to serve a life time prison term for attempting a coup d’etat in Cambodia in 2000]

Koh Santepheap, Vol.43, #6991, 25.6.2010

  • The 24th Synthesizing Report of the ILO Shows the Recovery of the Garment Sector [in Cambodia – the rate of export within five months of 2010 was more than that within the corresponding period last year; the rate of employment increased a little since 1 November 2009 and the rate of unemployment which results from the global financial crisis is stable – it is not deteriorating]

Moneaksekar Khmer, Vol.17, #690, 25.6.2010

  • Sam Rainsy Party Leader [Mr. Sam Rainsy] and Parliamentarian [Ms. Mu Sochua] Who Are Facing Arrest Will Attend the ASEAN Free Parties’ Forum in the Philippines as Honorary Speakers [from 27 to 29 June 2010]

Phnom Penh Post [Khmer Edition], Vol.1, #201, 25.6.2010

  • The Prime Minister Said that the Sam Rainsy Party Was Also Involved in the Unsuccessful Coup [by the Cambodian Freedom Fighters – CFF]
  • Thai Soldiers Shot and Killed a Khmer Worker when He Was Returning from Work [accusing him of illegally trafficking motorbikes across the border – the spokesperson of the Ministry of Foreign Affairs, Mr. Koy Kuong, condemned this fatal shooting and waits for an explanation from Thailand]
  • The Mong Riththy Group [Company] Invests US$10 Million to Plant Rubber Trees at a Seashore Region in Sihanoukville in 2010 [on 5,000 hectares of land]

Rasmei Kampuchea, Vol.18, #5233, 25.6.2010

  • Samdech Dekchor Asked the Ministry of Transport of China to Invest to Construct [many] Roads in Cambodia According to the Built-Operate-Transfer [BOT]

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