"Thailand-Cambodia" to negotiate overlapping areas again, explore 26,000 sq. km. of offshore oil and gas resources.

Bloomberg News reported that “Thailand-Cambodia” are about to negotiate overlapping areas again, exploring offshore oil and gas sources with reserves of 300,000 billion dollars.

On October 10, 2567, Bloomberg News reported that the Thai government was preparing to resume negotiations with Cambodia to explore offshore oil and gas reserves worth at least $300,000 billion, a area the two countries have been disputed over since the 1970s.

Thai Prime Minister Paetongtarn Shinawatra stated that the joint survey is one of the government's top 10 urgent priorities as it strives to boost dwindling reserves, control electricity prices, and draft legislation to address soaring fuel imports.

In early 2567, Thailand and Cambodia agreed to discuss how to fairly utilize the 26,000 square kilometer area, which is estimated to contain approximately 10 trillion cubic feet of natural gas and 300 million barrels of crude oil.

The process will not be easy, given the two sides' history of diplomatic disputes and sovereignty sensitivities, with talks stalled since 2544, when the two countries agreed to discuss territorial claims while jointly developing resources.

But some are hopeful that the urgency to reduce domestic gas production and reserves, and to shut down fossil fuels, will lead to progress that will allow countries to start exploring now and resolve territorial issues later.

Finance Minister Pichai Choonhavachira told parliament last month, “We don’t need to resolve our differences over the border. We simply need to talk to each other as neighbors and try to make the best use of the available resources, which will enhance security and reduce utility costs.”

Cambodian government spokeswoman Pen Bona said in a statement to Bloomberg News that Cambodia remains committed to discussing this issue with Thailand. "If the new Thai government is ready, we are willing to continue negotiations," she added.

Natural gas can meet 60% of Thailand's energy needs, with domestic production accounting for more than half of that demand. At current consumption rates, Thailand could run out of gas in the next five to 5 years. There are also concerns about the country's ability to meet growing energy demand as the major automotive and tourism hub looks to attract energy-intensive data centers.

Mr. Kurujit Nakornthap, Director of the Petroleum and Independent Energy Institute of Thailand, stated, “If no action is taken, we will have to import more LNG to meet the demand for electricity generation.” He added that these unexplored reserves are expected to extend the country's offshore gas production for at least another 20 years.

Both Thailand and Cambodia have established revenue-sharing models for the disputed area, which, according to former Energy Minister Pichai Naripthaphan , contains resources worth at least 10 trillion baht. Successful negotiations would likely benefit companies such as Thailand's Chevron Corp., Shell Plc, and PTT Exploration & Production Pcl, which held concessions since the 1970s but were unable to conduct any exploration in the disputed area. Local media reported that ConocoPhillips and TotalEnergies SE hold concessions in Cambodia.

Cambodia, however, has little reason to rush to the negotiating table, even though it relies almost entirely on foreign fuel. Thailand has already conducted several joint surveys. In 2522, Thailand and Malaysia agreed to a shared boundary in the lower Gulf of Thailand, and have set aside a relatively small area of ​​just 7,250 square kilometres for ongoing joint development projects. As for the dispute with Cambodia, a Thai government spokesman said negotiations were one of the prime minister's top priorities, but declined to give a specific timeframe.

Reference: bloomberg.com

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