Cambodia-Thailand Maritime Dispute Gains Urgency Amid Iran Oil Shock
The global energy crisis linked to the Iran conflict has intensified pressure on Cambodia and Thailand to resolve a long-running maritime dispute and unlock offshore energy reserves estimated at $300 billion.
Cambodia’s Energy Minister Keo Rottanak said the disruption risks surrounding the Strait of Hormuz had sharpened concerns about energy security worldwide. The narrow waterway carries about one-fifth of global oil supplies, making instability in the region a major threat to international energy markets.
Cambodia has increasingly relied on renewable energy, including hydropower and expanding solar capacity, to cushion itself against the current turmoil. However, the country still views fossil fuel development as essential for long-term industrial growth.
“Before the crisis, perhaps all nations could take energy security a bit more lightly,” Keo Rottanak told Reuters. “But the ongoing crisis, especially the pressure from the Strait of Hormuz, has only brought energy security of any nation into sharper focus.”
Gulf Of Thailand Energy Potential
At the centre of the dispute is a 27,000-square-kilometre area in the Gulf of Thailand claimed by both Cambodia and Thailand. The contested zone is believed to contain around 11 trillion cubic feet of natural gas as well as significant oil deposits.
Keo Rottanak said international energy companies, including TotalEnergies, are interested in offshore exploration if both countries can settle their maritime disagreements. He added that developing the resources would benefit both nations economically and strengthen regional energy security.
The border disagreement has strained ties between Cambodia and Thailand for decades. Tensions escalated last year when two separate bouts of fighting killed nearly 150 people before a ceasefire was reached in December.
Cambodia Turns To UNCLOS Process
Cambodia now plans to pursue a compulsory conciliation mechanism under the United Nations Convention on the Law of the Sea after Thailand recently ended a 25-year framework agreement aimed at joint offshore energy exploration.
Thailand argued the previous arrangement had failed to deliver meaningful progress. Cambodia, however, protested the unilateral decision and now sees international legal mechanisms as the most viable path forward.
“We see that our choice of the UNCLOS Compulsory Conciliation is the only possible avenue to sort out differences in a peaceful and amicable manner,” Keo Rottanak said.
He added that Cambodia intends to engage Thailand in discussions regarding the conciliation process.
Thailand’s foreign ministry acknowledged the importance of the disputed area’s energy resources and the urgency created by the global energy crisis. However, Bangkok said any solution should first involve bilateral discussions between the two countries.
The UNCLOS conciliation procedure involves a panel of conciliators helping countries negotiate settlements. The mechanism was notably used by Timor-Leste in 2016 to establish permanent maritime boundaries with Australia.
Investment Challenges Remain
Keo Rottanak warned that prolonged delays could weaken investor confidence and reduce the likelihood of securing financing for exploration projects.
“If you are going to wait for decades more, the chances of attracting financing to do oil and gas exploration and exploitation may not be there,” he said.
Cambodia’s offshore energy ambitions have faced setbacks before. The country produced its first crude oil from Gulf of Thailand fields in late 2020 through a partnership with KrisEnergy. However, the Singapore-listed company later entered liquidation, stalling momentum in the sector.
Even with a quick diplomatic breakthrough, Keo Rottanak said significant time would still be required to mobilise investment, technology, and operational capacity for offshore production.
With inputs from Reuters