Companies Strike Deal to Explore for Oil and Gas

A 5,500-square-km swath of ocean off the coast of Sihanoukville is set to be explored for oil and gas, according to a firm with a large stake in the company that has production rights to the area known as Block D.

Mirach Energy Ltd., which owns 48 percent of CPHL (Cambodia), said in a press release Wednesday that a deal had been struck with two Chinese companies—PST Service Corporation and Chengdu Western Union Petro Engineering Technology Co.—to provide technical services during the exploration.

“In response to China’s ‘One Belt, One Road’ strategy, PST and UP are actively expanding their business to other parts of Asia,” the statement said.

Meng Saktheara, a spokesman for the Mines and Energy Ministry, said Wednesday that he had not been informed about the agreement but that Minister Suy Sem had a meeting at 10 a.m. today with CPHL.

Mirach Energy said in the press release that the agreement between the companies was conditional upon approval by Cambodia’s general department of petroleum, and would lead to the drilling of three wells.

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