Speaking after the ceremony, Sok An said the oil refinery project reflected the progress in developing Cambodian oil and gas sector.

"This also mirrors local and foreign investors' trust in Cambodian business and political situation," he said. "When the project is completed, it will greatly contribute to developing economy and reducing poverty in Cambodia."

Sok An said that currently, Cambodia's oil demand is more than 1 million tons a year, but the demand will reach 3 or 4 million tons a year in coming years thanks to a steadily growing economic size.

According to the figures recorded by the Ministry of Commerce, the country spent $1.33 billion to buy 1.35 million tons of oil from Vietnam, Thailand and Singapore in the first ten months of this year.

The country's seabed is believed to be rich in oil and gas, but exploitation is not made yet.

Sok An said that US' Chevron has invested about $150 million for oil and gas exploration in Cambodia's offshore Block A and it is estimated that the firm needs to invest another $600 million to exploit oil and gas from the Block.

"But, now, the negotiations between the government and the company have not yet completed on the issue of tax payment," he said.

Cambodian Government expects that it will earn tax revenues of $200 million a year from oil and gas sector when oil production begins.

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