Thailand, Cambodia to Share 500 Million Barrels of Oil

An overlapping claim area (OCA) covering 26,000 sq km that is estimated to contain up to 500 million barrels of oil and gas deposits will be the subject of talks between Thailand and Cambodia.

In order for the two nations to develop new energy sources, they must first resolve the territorial dispute.

The government is expected to incorporate joint development into its long-term policies, according to Thai Energy Minister Supattanapong Punmeechaow.

As part of its efforts to promote energy independence, the government is holding energy negotiations with neighboring countries such as Cambodia and calling for bids for petroleum concessions.

In seeking new energy sources, particularly in neighboring countries with potential energy sources like Cambodia, if the talks start and end early, we expect that we will be able to use these resources in the next 10 years, as the infrastructure is now available to both Thailand and Cambodia,” said Mr Supattanapong.

A committee has been formed to investigate ways to jointly develop the 5  million barrels of oil and the overlapping claims area, and the Foreign Affairs Ministry will lead negotiations with Cambodia.

At the moment, some details need to be examined. For instance, the Foreign Ministry remains concerned about some border demarcations, which will need to be resolved and explained to the public. The sooner economic cooperation begins, the better,” Mr Supattanapong said.

Phnom Penh Post reported on Aug 23 that Cambodia is prepared for talks with Thailand to avoid potential energy crises down the road.

500 million barrels of oil and gas deposits in the Gulf of Thailand

Thai Energy Regulatory Commission secretary-general Khomgrich Tantravanich suggested that policymakers of both countries establish a clear but positive dialogue over the long-disputed OCA in the Gulf of Thailand.

OCA encompasses the Cambodian, Thai, and Vietnamese borders in the gulf and has been an issue since the early 1970’s.

In 2009, the Thai government signed a memorandum of understanding to explore the OCA jointly. Various attempts have been made to rekindle negotiations over the 500 million barrels of oil oil and gas deposits in the region with varying degrees of success.

A spiraling global oil and gas market, boosted by the reopening of the economy and the Ukraine crisis, may change the course of negotiations this time around.

Earlier this month, Cambodia’s minister of mines and energy, Meng Saktheara, said although both countries have called for a speedy resolution, the talks have not progressed.

A government official told The Post that Cambodia is “ready” to negotiate, while Saktheara suggested following the Malaysia-Thailand Joint Development Area model.

Deputy government spokeswoman Rachada Dhnadirek said the cabinet approved the draft agenda for Friday’s videoconference meeting on Tuesday.

They will discuss cross-border travel management, trade and investment, labour and industrial cooperation, and public health and community development.

Source: Bangkok Post

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