Administration and Legal System
            Cambodian National Petroleum Authority "CNPA" was established in accordance with Royal Decree no. ChorSor/RorTorkor 0198/020, dated 22 January 1998, with the important role and responsibility to manage and develop both upstream and downstream activities within the petroleum sector.
            CNPA is under the direct supervision of the Prime Minister and headed by a Chairman, H.E. Sok An, is currently senior minister in charge of the Council of Ministers. The Chairman has the full authority necessary to oversee the CNPA 's work performance and responsibility for facilitating petroleum operations, both upstream and downstream, policy-making, planning and drafting legislation in relation to petroleum management and development in the country.
            Since no law was in force at the time, the main instrument for the regulation of upstream petroleum activities in Cambodia is the 1991's Petroleum Regulations, under which production sharing contract (PSC) is issued to set forth terms and conditions for contractors to conduct petroleum exploration and production in the country.
  Model Production Agreement
            Provisions of a production sharing contract includes items such as definition of exploration blocks; duration of exploration and production; minimum work and expenditure obligation; basic rights, duties, and privilege of contractor; fiscal regime (see next page); sanctity of contract; and arbitration.
            In addition to royalty and petroleum income tax, a production sharing contract also contains a clause on special advantages that a contractor may offer to the government in return for being awarded the contract. Those advantages normally offered are items such as scholarships, training, grant to government agencies or educational institutions, signature bonus, production bonus, or state joint venture participation.
  Production Sharing Contract Flow Diagram
  Fiscal Regime
            In brief, the fiscal regime provided for in the 1991's Petroleum Regulations consists of four elements:
Royalty : 12.5%
Cost Recovery : 70 to 80% for oil based on negotiation
Profit Sharing : calculated after royalty and cost recovery
Crude Oil
Percentage (%)
Government- Contractor
Up to 10.000
42 - 58
10,001- 25,000
47 - 53
25,001- 50,000
52 - 48
50,001- 75,000
57 - 43
75,001- 100,000
62 - 38
Over 100,000
67 - 33
Natural Gas
Percentage (%)
Government- Contractor
Up to 5
40 - 60
5.1 - 10
45 - 55
10.1- 15
50 - 50
Over 15
60 - 40
  Income Tax : 25 to 50 % levied on the contractor's profit sharing.
  * All infrastructures and equipment imported for petroleum operations are exempted from all duties and taxes leviable under prevailing laws.

"The boundaries and names shown and the designations used in this website on CCOP EPF
do not imply official endorsement or acceptance by CCOP."

Copyright © Coordinating Committee for Geoscience Programmes in East and Southeast Asia (CCOP)
24th Floor, Suite 244-5, Thai CC Tower, 889 Sathorn Tai Road, Sathorn, Bangkok 10120, THAILAND
Tel: (662) 672-3080-1 Fax: (662) 673-3082 E-mail:
Last Update: 8 August 2002