business news in Cambodia

Govt agrees energy deal with KNOC of South Korea

THE Cambodian National Petroleum Authority (CNPA) entered into an agreement Friday with the Korean National Oil Corporation (KNOC) on future cooperation in exploration of oil and gas in the Kingdom.The memorandum of understanding on energy cooperation, which was signed during the visit of a South Korean delegation led by President Lee Myung-bak, will see both sides share geological data, human resources training and experience in the sector, said Council of Ministers chief Sok An.The deal also allows the state-run South Korean energy body to conduct oil and gas feasibility studies in the Kingdom’s offshore areas, a deal that would give “hope for the future in the search for … resources”, said KNOC Director Young Won-kang.The CNPA’s Deputy Director Ho Vichet said after the signing ceremony that the two-year agreement would entail data-collection followed by analysis before targeting specific areas. He added that capital allocation would be determined by both sides at a later date.The agreement is only preliminary, which means that the exact location and blocks to be explored have yet to be determined, he said.A 25,000-square-kilometre contested area with Thailand is thought to include the only two areas that the government has still not doled out – Area III, which is the subject of a delayed agreement with France’s Total, and Area IV, which has been the subject of recent bids by Chevron and Mitsui of Japan, according to reports.

Branching out

Employees of ACLEDA Bank watch a ceremony Friday to mark the launch of the bank’s newest branch, a new head office for Kampong Thom province in Kampong Thom town on National Highway 6. ACLEDA has now opened eight offices in the province, which at the end of September was hit by Typhoon Ketsana. Managers of the bank said the natural disaster had not affected the opening of the branch