The U.S. oil giant Chevron has finished its exploration at offshore Cambodia and will start oil and gas production in 2008, local media said on Sunday.

Chevron has transferred its exploration equipment from Cambodia 's seaport city Sihanoukville to its working site and now plans to import new equipment through the port for oil and gas production, the Chinese language newspaper Sin Chew Daily quoted a municipal government official as saying.

"Senior Chevron staff members told me by phone that the exploration is completed and the rigs will start working to produce oil and gas next year," said Lou Kim Chhun, whose capacity in the government remained unclear.

Meanwhile, the Cambodian Natural Gas and Petroleum Agency confirmed that it imposes no control on Chevron's activities in Cambodia.

Chevron, together with LG from South Korea and a Japanese company, is allowed by the Cambodian government to invest and conduct exploration at its western sea shore.

At least 700 million barrels of crude oil are estimated to lie off the coast and the Cambodian government is now preparing an oil and gas management law in anticipation of oil and gas revenues starting from 2009 or 2010.

Source: Xinhua