The impoverished Southeast Asian nation hopes that it will be able to produce the first drop of oil by 2018.

"The integrated technical services by PST and UP will include work like comprehensive block evaluation, well location optimization program, evaluation of exploratory wells, drilling engineering design, and materials acquisition," the statement said.

PHNOM PENH, June 3 (Xinhua) -- Singapore-listed Mirach Energy Limited's associated company, CPHL Cambodia, has signed a project cooperation agreement for Cambodia Offshore Block D (Block D) with two subsidiaries of Shenzhen-listed Landocean Energy Services Company, according to a Mirach Energy's statement on Wednesday.

"In response to China's 'Belt and Road' strategy, PST and UP are actively expanding their business to other parts of Asia, besides China based on their resource sharing and win-win partnership strategy," the statement said.

CPHL Cambodia has also completed its Environmental Impact Assessment Report since 2014 and has received approval of the report from the authorities, it said.

Under the agreement, CPHL Cambodia has the option to pay for the integrated technical services with either cash or shares, depending on the results of the drilling and other commercial terms, it added.

The Block D is one of the six offshore Blocks that Cambodia has awarded to companies to do the exploration.

These two subsidiaries are PST Service Corporation (PST) and Chengdu Western Union Petro Engineering Technology (UP), the statement said.

According to the statement, Mirach Energy is the operator of the block with a 30 years production rights and has been negotiating with the Cambodian General Department of Petroleum since 2013 on the exploration drilling plans and the exploratory period dateline.

The other five Blocks are Block A to Singapore-based KrisEnergy, Block B to Thailand's PTT Exploration and Production and Singapore Petroleum, Block C to Polytec Petroleum Hong Kong, Block E to Medco Energi and Kuwait Energy, and Block F to China National Offshore Oil Corporation.

CPHL Cambodia will facilitate the service providers in the areas of legal and governmental communication including getting all the approvals from the local authorities for the entire exploration drilling operations.

Block D covers 5,507 square km in shallow water area, which is estimated that the mean number of oil initially in place is 1,751 million barrels, the company said.

After their earlier initial evaluation of Block D, they had agreed to partner with and share the exploration risks of Block D with the CPHL Cambodia to provide an integrated technical services solution in the drilling of three exploratory wells at Block D, it said.