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Cambodia cancels two concessions for offshore oil

Xinhua, January 21, 2016 Adjust font size:

The Cambodian government has cancelled two concessions for offshore oil - Block B and Block F - held by a foreign company last year because it failed to comply with the terms of agreements, a local newspaper reported Thursday, citing a senior official.

Meng Saktheara, secretary of state of the Ministry of Mines and Energy, said the two offshore licenses were held by Malaysia's operator Resourceful Petroleum.

"The company did not perform according to, and failed to fulfill, the obligations stated in their Petroleum Agreements (PA)," he was quoted as saying by the Khmer Times.

Block B with an area of 6,300 sq km was given on concession to Resourceful Petroleum and Thailand's PPTEP in 2005, while offshore Block F with an area of 7,000 sq km was given to Resourceful Petroleum and China's CNOOC in 2007. However, both blocks were transferred to Resourceful Petroleum in 2013.

"The cancellation of the PAs is purely contract-based and has nothing to do with the draft petroleum law. The cancellation sends a strong message to the industry that we are capable and serious in handling performance of contracts. Companies must abide by legal terms and provision set in their PA," he said.

Saktheara said bidding for the two blocks would be opened for other companies soon.

The Ministry of Mines and Energy is close to finalizing a draft law on petroleum, oil and gas, officials have said. The draft is about 80 percent completed and will replace legislation enacted in 1990 with the goal of enhancing the industry. Enditem