The issue of the overlapping area claimed by both Thailand and Cambodia should be resolved as soon as possible to help combat Thailand's growing energy crisis, according to Kurujit Nakorntap, executive director of the Petroleum Institute of Thailand (Ptit).
Mr Kurijit, who also formerly served as secretary of the Energy Ministry, made the remark during a speech at a forum titled "The Overlapping Claim Area (OCA) between Thailand and Cambodia" that was co-hosted by Chulalongkorn University's Law Faculty and the Treaties and Legal Affairs Department of the Foreign Affairs Ministry on Thursday.
He said it is necessary to resolve the conflict as it would help save Thailand from an impending energy crisis as this contested area could become a new petroleum site in the upper part of the Gulf of Thailand. It is located near the Bongkot and Erawan gas blocks.
He said the country's natural gas reserves have decreased, and new sources have not been found since 2005. In addition, the amount of natural gas imported from Myanmar is also decreasing.
Additionally, international oil companies (IOCs) have started to withdraw their investments from Thailand, he said. Therefore, resolving the dispute over the OCA could serve as a huge boon because that area is enriched with natural gas, Mr Kurujit said.
"As it is a no-man's-land, we can't determine the value and amount of the gases underneath the sea floor, but technically, the area of the Joint Development Area [JDA] below the latitude of 11 degrees north is located in the Pattani basin and is enriched with natural resources. Even if we do not know how much [gas] is there, it is a valuable investment, and there is a high probability we will make some good discoveries," he said.
To resolve the dispute, he suggested bilateral negotiations on stating clear boundaries and an agreement on principle for a lower JDA, as well as talks over taxation, customs, jurisdiction, environmental management, and the allocation of rights/interests among existing concessionaires from both countries. He also suggested a new organisation be set up to oversee this, a joint authority funded, and legislation implemented to effectively administer petroleum exploration and production in the JDA.
"When it comes to negotiations, we're not saying 'we want it all', but rather we need to compromise while considering all related factors such as politics, the economy and the history of our two countries," Mr Kurujit added.
Furthermore, he suggested all stakeholders should learn from previous successes, such as the Thai-Malaysian agreement to conclude a cooperation project in their JDA by signing an MoU in 1979 that saw both countries agree to equally split the benefits of certain operations within their overlapping seas. They also agreed to set up the Thailand-Malaysia Joint Authority to work together.
Mr Kurujit also cited the deal between Thailand and Vietnam on the Delimitation of the Maritime Boundary in the Gulf of Thailand in 1997, which has enabled Thailand to take natural gas from the Arthit gas and condensate field.