Introduction
A long-anticipated draft Law on Management of Petroleum and Petroleum Products (the “Petroleum Law”) was initially initiated in 1996, and finally adopted by The National Assembly of Cambodia in July 12, 2019.
The Petroleum Law was not the first legislation in Cambodia, meaning that the first introduced regulations in Cambodia are the Cambodia Petroleum Regulations (the “Petroleum Regulations”), dated September 28, 1991, adopted by Council of Ministers, and then was amended twice by Decision No. 73, dated October 10, 1995, and Decision No. 25, dated March 19, 1999.
The first Petroleum Regulations have played an important role in monitoring and managing petroleum activities and help to attract investors in investing in the country’s petroleum sectors. The Petroleum Regulations covers only the downstream business activities in the petroleum sectors, while the newly enacted Petroleum Law covers both downstream and upstream business activities by playing a role as a gap filler. Also, it contributes to implementing the key principles of international best practices in the petroleum industry, paving the way and opportunities for potential investors to boost their confidence in considering investing in Cambodia’s petroleum industry.
The Petroleum Law consists of nine chapters with 72 articles and its goal is to manage and develop petroleum resources sustainably and effectively in order to contribute to the socio-economic development for a long-term interest of the country. Its specific objective is to determine the competence and rules of managing petroleum industry. Concerning petroleum industry in Cambodia, there are two main business activities, including downstream activity and upstream activity. This petroleum business activity is under the competence of Ministry of Mines and Energy.
