Tuesday, December 18, 2007

Cambodia Oil Project Invest Decision Likely 1Q '08 -Chevron Executive

BEIJING -(Dow Jones)- Chevron Corp. (CVX) is in the "very late stages" of evaluating oil fields discovered offshore Cambodia in 2004 and may make a decision on their development within three months, a senior executive said Tuesday.

"Probably I would expect some decisions coming out of Chevron in the first quarter or so of 2008 about what our go-forward plans are," said Stephen Green, chief executive of Chevron's South Asia unit.

Oil is distributed over a wide area in the 6,278 square-kilometer Block A, which is around 200 kilometers off the coast of Cambodia, rather than a single pool, Green said.

This adds to the challenge of drawing up a viable development concept for the fields, said Green.

Meetings will take place with the Cambodian government and project partners before a final investment decision is made, he said.

In a recent report, the International Monetary Fund forecast recoverable reserves from the Chevron discoveries at 500 million barrels, with the first of three fields entering production in 2011.

The IMF predicted a $15 billion windfall for the Cambodian government from royalties and taxes over the life of the fields.

-By David Winning, Dow Jones Newswires; 8610-65885848; david.winning@ dowjones.com

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