It could be a decade before “a single drop of oil” is produced through joint exploration by Thailand and Cambodia in the Gulf of Thailand, the former’s Energy Minister has said.
29 December 2011
Eoin O'Cinneide
UpstreamOnline.com
Years of conflict are, however, at an end and the relationship between the fractious neighbours is now “very good”, Pichai Naripthaphan said on Thursday as the countries try to restart stalled talks on joint offshore exploration work.
Thailand announced on Wednesday that it was sending a ministerial delegation to Cambodia to re-open talks on joint development of offshore energy in the Gulf of Thailand’s Overlapping Claim Area (OCA) which covers around 27,000 square kilometres.
"There are processes that need to be done on both sides but the intention was very good, the relationship was very good and we're certain in the future there'll be no more conflict," Reuters quoted the Thai minister as saying on Thursday.
"We want to see this proceed with success because it's for energy security for both countries ... for another 40 or 50 years.
He warned, however, that “there are a lot of processes and it could be eight to 10 years before a single drop of oil and gas comes”.
Talks on joint development stalled when former Thai Prime Minister Thaksin Shinawatra was toppled in a military coup in 2006.
Relations have improved significantly, however, since Thaksin's sister Yingluck Shinawatra came to office in August after a landslide election win that Cambodia's Foreign Ministry publically celebrated by opening bottles of champagne.
Thailand and Cambodia have claimed sovereignty over the offshore area since the early 1970s and a memorandum of understanding was signed in 2001 to jointly demarcate the offshore area and 800 kilometres of disputed land.
However, a series of diplomatic spats since 2007 has put paid to the plans, including troop clashes in February and April this year that marked the deadliest Thai-Cambodia border fighting in two decades.
US giant Chevron is operating Block A in the Gulf while French supermajor Total also has exploration rights in the area and recently told Reuters it was ready to start work as soon as the dispute was settled.
Three Japanese companies - Inpex, Marubeni Oil & Gas and Mitsui Oil Exploration - have also shown interest in exploring, as well as some from Europe.
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