New oil resources pose management test for Cambodia, IMF says

Jun 27, 2006, 6:32 GMT

Siem Reap, Cambodia - The discovery of Cambodian oil reserves represented a tremendous opportunity for the nation's economy, as long as the resource was properly managed, a senior International Monetary Fund (IMF) advisor said Tuesday.

Jeremy Carter, an IMF advisor for the Asia-Pacific region, said the discovery of large offshore oil reservoirs had the potential to not only significantly expand the economy but provide spin-off benefits which would boost the living standards of all Cambodians.

Oil was discovered in 2004 off the country's coast. Exploratory drilling is expected to begin by the end of this year or early next.

'Cambodian oil presents a tremendous opportunity ... it is a tremendous resource,' Carter said at a conference to discuss ways to accelerate the economies of the Mekong nations of Laos, Vietnam and Cambodia.

'At the same time it must be appropriately managed and work out how you use this resource in order to expand the economy and create jobs. Oil can generate income, but this is not going to happen next week or next month.'

He said the IMF was not in the business of discovering oil, but was looking forward to continued cooperation with the Cambodian government to provide advice and management strategies.

'What the IMF does, and I think does very well, is provide background to issues,' he said.

The two-day conference, scheduled to end Tuesday afternoon, is being attended by delegates from the Association of South East Asian Nations (ASEAN), the Asian Development Bank, economists, ministers and deputy ministers from the three Mekong nations. Vietnam is already a major oil producer in the region.

It is being hosted by the Cambodian government, the IMF and the ASEAN secretariat and is aimed at discussing ways to help the three nations boost their economies to catch up with richer nations in the region such as Singapore, Brunei, Thailand and Malaysia.