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

By: The Mirror Posted: June-28-2010 in
The Mirror

The Mirror, Vol. 14, No. 670

“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

This article was first published by The Mirror, Vol. 14, No. 670 - Friday, 25.6.2010
Have a look at the last editorial - you can access it directly from the main page of The Mirror.

Norbert Klein is the Editor of The Mirror – The Mirror is a daily comprehensive summary and translation of the major Khmer language press - More about The Mirror

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.

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