China's CNOOC has started drilling its first oil well offshore in Cambodia.
The news was announced by Li Fanrong, CNOOC's Chief Executive Officer during a meeting with Cambodia's Deputy Prime Minister Sok An, Minister of the Council of Ministers.
The government of Cambodia had awarded the Block F licence to CNOOC in 2007, giving China's oil giant access to more than 7,000 square kilometers of oil and gas exploration territory in Cambodia's Preah Sihanouk province. Drilling of the first offshore well began towards the end of December with an anticipated drilling cost of US$20 million.
Meanwhile, the Cambodian Minister declared the start of exploration in the region as "a very good sign for Cambodia's oil and gas sector", adding that Cambodia had given its full backing to CNOOC's activities. He also took the opportunity to ask China's biggest offshore oil and gas company to use its technical expertise to help the country's fledgling oil and gas industry develop its own experts.