Cambodia’s first oil refining plant is to start construction in April 2012 at a cost of US$2 billion according to information obtained by the Phnom Penh Post. The joint venture between Cambodian Petrochemical Company (CPC), China National Automation Control System Corporation and Sino March Company of China is expected to be completed in 2014. The oil refinery will be built on 365 hectares of land within both the Kampot and Sihanoukville provinces.
Cambodia’s current oil supply is met through imports from Thailand, Vietnam and Singapore and it is hoped that the Kingdom’s dependency on petroleum imports will be reduced. The plant is expected to have a production capacity of 5 million tonnes of refined oil a year, and it is predicted that up to 85% of the finished products will be sold within Cambodia for the first 2 years.
New contract details indicate that CPC will control the plant, providing that the company shared revenues with China National Automation and Sino March for 10 years, according to Hann Khieng of CPC. Additional information obtained by the newspaper also indicates that the plant would be capable of refining imported European Crude Oil.