Cambodia Gives Chevron Drilling Ultimatum

The yellow areas in the map indicates oil concessions awarded to Chevron.

By Gordon Wilcox
benzinga.com

Chevron (NYSE: CVX), the second-largest U.S. oil company, had better start producing oil in Cambodia by 2012 or risk losing its offshore drilling licenses, according to the country's prime minister.

Cambodia's government is eager to start generating oil revenues to help it cope with rising poverty and budget problems.

Chevron drilled 15 wells in Cambodia in 2007 west of coastal Preah Sihanouk province, and says it is evaluating its commercial potential, Bloomberg News reported. The discovery is believed to be the first significant oil find in Cambodia's history following the first oil find there in 2005.

Companies from Australia, China, France, Indonesia, Malaysia, Singapore and South Korea also have expressed interest in exploring Cambodian waters for oil, according to Bloomberg.