Energy minister outlines best-case UNCLOS outcomes

With the clock ticking on the selection of the fifth conciliator for the UN Convention on the Law of the Seas (UNCLOS), Cambodia is placing high hopes that a peaceful solution will be made over the Overlapping Claims Area (OCA) with Thailand. Some estimates suggest that the area may contain up to $300 billion in natural resources. In an interview with CNC outlet, Keo Rottonak, Minister of Mines and Energy, explained that based on several studies, including by renowned exploration company Wood Mackenzie, the OCA area is 26,000square kilometres, the size of Moscow. Should the two neighbouring Kingdoms agree to share exploration, the field could produce up to 12 trillion cubic feet (12 Tcf) of natural gas and 700 million barrels of oil. “These resources are estimated to be between $280 billion to $300 billion. If these resources can be successfully utilised, they could provide a large cash injection to both the Thai and Cambodian economies. This will also lead to a drop in the price of energy, improving economic competitiveness. It will also push up energy security for the whole of ASEAN,” he said. He added that Cambodia’s decision to go to UNCLOS’s conciliation procedure has drawn global attention, as the world’s energy industry is facing the impacts of the on-again, off-again US-Iran war. The minister explained that for the last two decades, before Thailand scrapped the Memorandum of Understanding on maritime boundaries (MoU 2001), Cambodia made it clear that the process must include two things: Clear boundary lines based on international law, and then the sharing of the available resources. “Some Thai media said that they only want to solve maritime boundaries, not resource management. Cambodia wants to solve both issues in one process, the boundaries and the resources,” he said. “If we don’t decide on the management of the resources, it would be like having a wall, without knowing who the owner of the house is. We need a clear formula to decide on how the resources will be allocated,” he added. He hoped that the coming UNCLOS ruling will cover both issues, similar to the resolution achieved by Timor-Leste and Australia in 2018. Both Cambodia and Thailand have allowed foreign oil companies to explore the maritime resources, but their activities were delayed and then petered out due to the fact that the two nations could not agree on a boundary line or how to share resources. “Cambodia is hopeful that the UNCLOS mechanism, a peaceful and legal path, in line with international law, will allow both sides to find a peaceful formula that will determine the boundary line and an appropriate share of resources,” said the minister.