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Thailand’s new government is set to restart negotiations with Cambodia over an offshore oil and gas field containing at least US$300 billion (RM1.287 trillion) in reserves, which has been the subject of dispute between the two countries since the 1970s.
Prime Minister Paetongtarn Shinawatra, who took office in September, has listed the joint exploration of the 26,000-square-kilometre area as one of her administration’s top priorities. The move comes as Thailand seeks to boost its depleting reserves, manage electricity prices, and reduce its growing fuel import bill.
The gas field, estimated to contain 10 trillion cubic feet of natural gas and 300 million barrels of crude oil, could provide a major economic boost, but diplomatic tensions and territorial disputes have hindered progress. Talks stalled in 2001, as both nations insisted that territorial claims be resolved in conjunction with resource development.
There is hope that Thailand’s urgent need for energy security will drive progress. Domestic gas supplies could be exhausted within five to ten years, raising concerns over the country's ability to meet rising power demand, especially as it positions itself as a hub for energy-intensive data centers.
Both nations have suggested revenue-sharing models, and a successful negotiation could benefit major oil companies like Chevron Corp, Shell Plc, and Thailand’s PTT Exploration & Production Pcl. However, Cambodia remains less pressed for resolution, relying heavily on foreign fuel and lacking a strong domestic oil and gas industry.
While Thailand’s precedent for joint exploration, such as the agreement with Malaysia in the Gulf of Thailand in 1979, may offer a framework, critics warn that any compromise on sovereignty could lead to public backlash. Former senator Somchai Swangkarn cautioned that the overlapping claims area must be resolved before commercial exploration discussions can proceed.
Nonetheless, Cambodia expressed willingness to continue negotiations, signaling potential progress in the long-standing dispute.
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