Paetongtarn Government Seeks a New MOU on the OCA based on Joint Exploration
Thailand’s ruling coalition, led by Prime Minister Paetongtarn Shinawatra, has formally proposed to resume talks over Thailand and Cambodia’s maritime Overlapping Claims Area (OCA), a long running sovereignty issue since the 1970s. This would be a historic and ironic development, as the last formal agreement on the contestation was a 2001 memorandum of understanding signed by Thaksin Shinawatra, father of the current PM, during his tenure in office. The OCA being rich in natural resources, the Pheu Thai government is proposing it be jointly explored and developed, despite the domestic opposition's protest. The Shinawatra family’s personal relationship the ruling Hun family of Cambodia adds an extra layer of intrigue as to whether these plans will move forward.
The petroleum-rich OCA is a 27,000 km2 area in the Gulf of Thailand estimated to contain 10 trillion cubic feet of natural gas and 300 million barrels of crude oil. Such vast resources are not to be overlooked, especially at a time when Thailand desperately seeks to bolster its diminishing natural gas reserves, rein in electricity prices, and combat rising fuel import costs. It’s also not just a matter of territorial integrity, but also of energy security, securing resources close to home. U.S. petroleum and LNG developers operating in ASEAN have been monitoring the OCA, just as long as Thailand and Cambodia have. A joint resolution on the issue would not just bring clarity and coprosperity to the governments involved but also opportunity to foreign developers that would be partners in exploration, extraction, and utilization.
