Thailand and Cambodia reignite talks on joint petroleum production
The Petroleum Exploration and Production Industry Club has shown its full support to the renewed efforts of the government to kickstart the oft-stalled talks on joint petroleum production between Thailand and Cambodia. The talks revolve around the Overlapping Claims Area (OCA), located in the Gulf of Thailand.
Nipatsin Yimyam, the club’s chairman under the Federation of Thai Industries, stated their agreement to continue the OCA discussions with Cambodia. The OCA, claimed by both nations, has the potential to be a fresh petroleum source due to its proximity to the Bongkot and Erawan gas blocks, as per the Department of Mineral Fuels.
The decision to reinitiate the talks on the OCA was taken last month, following a visit to Thailand by the Cambodian Prime Minister, Hun Manet. These negotiations, first brought up in 2001, have seen little progress until now, reported Bangkok Post.
The success of the discussions would lead to a significant economic boost for both Thailand and Cambodia, as they would have access to a new petroleum source, according to Nipatsin.
“If natural gas is discovered, both countries can add value to it.”
Thailand, Nipatsin stressed, has industries related to petroleum that can support new petroleum businesses. He also pointed out that the Federation of Thai Industry club has a membership of 30 companies willing to aid the government in enhancing the economy.
The oil and gas industry is expected to generate an economic value of 200 billion baht (US$5.6 billion) for Thailand. Prime Minister Srettha Thavisin had earlier pledged to extract treasure from the OCA, thought to be rich in fossil fuel deposits, to assist in controlling electricity prices as the country transitions to green energy.
The 61 year old Srettha believes that gas is a suitable energy source for Thailand as the nation moves from fossil fuels or brown energy to green and particularly, renewable energy. Currently, gas makes up 60% of fuels used for power generation in the country.
Nipatsin highlighted that if the OCA can supply more gas to Thailand, the country will be less reliant on expensive imported liquefied natural gas.
