Samdech Techo Hun Sen Says Oil Revenue Has Little Impact on Cambodian Economy

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Phnom Penh, February 01, 2021 — Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Kingdom of Cambodia, has affirmed that oil revenue will have little impact on the country’s economy compared to other sectors, including tourism.

During the groundbreaking ceremony for the construction of Bakheng Water Treatment Plant and the inauguration ceremony of Chamkar Mon Water Treatment Plant here this morning, the Premier said that the revenue from the oil sector is small and it cannot support Cambodia’s economy.

According to Samdech Techo Hun Sen, the first well has been operating for 33 days. It is extracting some 1,236 barrels per day. So, in 33 days, there were in total 40,788 barrels.

“If a barrel of oil costs more than US$50, we can get only over US$30 million a year, which is smaller than the income from travel visas of 1 million foreign tourists,” he explained.

Samdech Techo Hun Sen continued that the second well has just started its operation, and the third, fourth and fifth wells will operate one after another. It is estimated that Cambodia will receive from more than 7,000 to 7,500 barrels a day, he added.

“Recently, there were analyses on whether the oil yield can support the Cambodian economy or not. I would like to emphasise that the revenue from oil resources is still small and cannot support the Cambodian economy yet,” the Prime Minister said.

By Heng Panha