Saturday, May 1, 2010

Total confirms $8m social fund [-More tea money?]

Friday, 30 April 2010
By James O'Toole
The Phnom Penh Post

FRENCH energy company Total confirmed Thursday that it paid the government US$28 million, including $8 million for a “social development programme”, to secure rights to drill for oil offshore in an area claimed by both Thailand and Cambodia.
Penelope Semavoine, a Total spokeswoman in Paris, said Thursday the company had signed the agreement in October with the Cambodia National Petroleum Authority (CNPA) to explore the 2,430-square-kilometre offshore block designated Area III. The company, she added, paid a $20 million signature bonus to the CNPA in January and is planning an $8 million social development fund.
Prime Minister Hun Sen referred to the Total deal in a speech at the Government-Private Sector Forum in Phnom Penh on Tuesday. Rebutting media reports that mining giant BHP Billiton paid bribes to the Cambodian government, the premier said the firm had merely contributed to a social development fund. Total, he noted, “also paid this kind of money”.

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