Thailand's Prime Minister Paetongtarn Shinawatra has announced plans to restart negotiations with Cambodia regarding a US$300 billion offshore oil and gas project that has been mired in disputes since the 1970s. This joint exploration initiative aims to enhance energy security and reduce utility costs for both nations. The two countries have agreed to discuss the exploitation of a 26,000-square kilometer area believed to contain approximately 10 trillion cubic feet of natural gas and 300 million barrels of crude oil [2f5ffdb7].
Negotiations have been stalled since 2001 due to ongoing territorial claims, but Finance Minister Pichai Chunhavajira has emphasized the importance of neighborly discussions to utilize the resources without needing to resolve boundary disputes first. Meanwhile, Cambodia's government spokesperson, Pen Bona, has expressed readiness to continue negotiations, indicating a willingness to move forward despite the complexities involved [2f5ffdb7].
Natural gas currently meets 60% of Thailand's power needs, but domestic supplies are dwindling. The unexplored reserves from this project could potentially extend Thailand's offshore gas supply by at least 20 years, making the successful resolution of these negotiations critical for the country's energy future. Major companies such as Chevron Corp., Shell Plc, and PTT Exploration & Production Pcl stand to benefit significantly from the project's advancement. However, critics argue that Thailand should prioritize resolving territorial claims before pursuing commercial exploration [2f5ffdb7].