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Cambodian oil boom underway
 Oil companies have begun lining up for licenses to tap Cambodias vast oil and gas fields, but experts are wondering whether this new wealth will be a blessing for the country. Firms from China, Japan, South Korea, Malaysia, Singapore, Kuwait, Australia, and France have come knocking on officials doors to get permits to explore and develop the countrys energy riches. US giant Chevron Corp. has already drilled in the Gulf of Thailand in the last two years and found oil in five oil wells.According to several studies conducted by the United Nations, World Bank, Harvard University, and other reliable institutions, Cambodian reserves could contain as many as 2 billion barrels of oil and 10 trillion cubic feet of gas. Based on the current world price of oil and gas, this may provide Cambodia with annual revenues of US$ 6 billion a year over the next two decades, an amount more than the countrys gross domestic product which is only about US$5 billion a year. Cambodia is one of the worlds poorest countries. Some 40 per cent of its population of 14 million live below the national poverty line of 50 cents a day, 50 per cent of children never complete their primary education, 30,000 children die every year from preventable diseases, and only half of the countryside has access to electricity. Many experts fear a repeat of what has happened in many other developing countries where massive influx of oil money enriched elites without improving the standards of living of the population. The best example is Nigeria. Since the discovery of oil in the 1970s, the African country has exported more than US$ 400 billion in oil, but that has not benefited its people, 70 per cent of whom continue to live on less than $1 a day. Moreover, the country is carrying a US$30 billion debt. Cambodia is still viewed as one of the most corrupt countries in the world with the ruling Cambodian Peoples Party using violence in maintaining its power. But in recent years, Prime Minister Hun Sen's government has had to accept some reforms and show some more respect for human rights in order to get foreign aid which represents about 60 per cent of its working budget. However, soon it will no longer need Western aid and could disregard human rights groups altogether. In fact, Prime Minister Hun Sens regime has already created a Cambodian National Petroleum Authority under his full direct control over the oil wealth. Posted by: Fred 2007-02-20 |
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