Cambodia Pressurises Small Neighbour Laos on Oil Exploration in Gulf of Thailand

Cambodia will now initiate a compulsory conciliation mechanism under the ⁠UN Convention on the Law of the Sea

· Agreement cancelled: Thailand has withdrawn from a 25-year-old joint energy exploration pact with Cambodia.

· What was the deal: The 2001 agreement (MOU 44) aimed at joint offshore oil and gas exploration in disputed areas of the Gulf of Thailand.

· Reason cited: Prime Minister Anutin Charnvirakul said the pact showed no progress in 25 years, calling the move part of his policy agenda.

· Political context: Decision aligns with rising nationalism after recent border clashes between the two countries.

· Cambodia’s response: Phnom Penh expressed regret and plans to resolve disputes under the United Nations Convention on the Law of the Sea (UNCLOS).

· Shift in approach: Thailand signaled preference for direct bilateral negotiations, though it may reference UNCLOS principles.

· Background tensions:

o Two rounds of armed conflict last year

o ~150 deaths and large-scale displacement

o Ceasefire in place since December

· Stalled cooperation: The agreement had long struggled due to:

o Political instability in Thailand

o Territorial disputes

o Domestic nationalist opposition

· Strategic stakes: Offshore hydrocarbons in disputed waters remain a key economic and energy interest for both nations.

· Key takeaway: The cancellation reflects how geopolitical tensions and nationalism can derail long-term economic cooperation, pushing disputes toward legal or bilateral resolution instead.

[ABS News Service/05.05.2026]

Thailand on ⁠Tuesday (05.05.2026) cancelled a long-standing agreement ⁠with Cambodia to work towards joint offshore ⁠energy exploration, Thailand’s prime minister said, defying calls from its neighbour to stay the course on the 25-year-old pact.

The Thai cabinet’s cancellation of the 2001 agreement, which seeks to develop a framework to jointly explore hydrocarbons in parts of the Gulf of Thailand where the claims of Thailand and Cambodia overlap, had long been expected and follows two rounds of armed conflict between the two countries last year.

The withdrawal was an election campaign pledge of Thai Prime Minister Anutin Charnvirakul, who earlier this year rode a wave of nationalism stoked by the fierce fighting with Cambodia to become the first Thai leader to be ⁠reelected in two decades.

“Cancelling the deal is not related to the border conflict with Cambodia, but part of my policy. It has been 25 years and there has been no progress,” Anutin told reporters, adding that Cambodia would be informed of the decision.

Cambodia’s Foreign Minister Prak Sokhonn expressed regret over the termination and said Phnom Penh “has no option” but to settle the boundary issue under processes outlined ⁠in the United Nations Convention ⁠on the Law of the Sea, or Unclos.

“Cambodia’s decision to pursue compulsory conciliation under Unclos reaffirms its commitment to resolving maritime disputes peacefully and in accordance with international law,” he said in a statement.

Phnom ⁠Penh had recently described ⁠Thailand’s plan to withdraw from the agreement, known as Memorandum of Understanding 44, as “deeply regrettable”, adding it remained “firmly and consistently committed” to it.

Despite multiple rounds of meetings, MOU 44 has made little progress since it was signed, with the process derailed by political instability in Thailand, intermittent disputes between the two neighbours and fierce opposition from Thai nationalists.

The two-track agreement had proposed creating a framework to allow offshore oil and gas to be jointly explored ⁠in overlapping areas while parallel negotiations take place on formal demarcation.

Thai government spokesperson Rachada Dhanadirek said on Tuesday that Unclos would be used as a ⁠reference to negotiate directly with Cambodia on maritime boundary demarcation. Thailand has historically refused to take part in Cambodian efforts to settle border disputes using international mechanisms, including the International Court of Justice, insisting those be negotiated bilaterally.

A ceasefire has been in place between Thailand and Cambodia since late December after two eruptions of fighting along large stretches of their 817km (508 miles) border, the first of which ended after intervention by US President Donald Trump.

Each side blames the other for triggering both rounds of clashes, which killed close to 150 people and displaced hundreds of thousands of people.