Thailand gears up for petroleum exploration in Andaman Sea

Amid delay in talks with Cambodia over the overlapping claims area (OCA) in the Gulf of Thailand, the government is shifting its focus to another promising petroleum exploration project in the Andaman Sea, in the south of Thailand.

Energy Minister Pirapan Salirathavibhaga is currently setting up a panel to study petroleum exploration in plots 25-26 of the Andaman Sea, bordering Indonesia, Attawit Suwanpakdee, the minister’s chief adviser said on Friday.

He said the preliminary survey in 2005 found that the plots were full of petroleum resources, but the project was shelved then as drilling beneath the deep-sea level was not cost-effective.

“However, with modern technology today, it is possible to drill deeper into the sea, presenting an opportunity for Thai people to utilise natural resources at a lower cost,” he said.

Attawit pointed out that the Andaman exploration project is a high priority to help the country reduce its reliance on imported oil, which currently supplies nearly 90% of domestic use.

“While the OCA issue with Cambodia will not see a conclusion soon, the ministry hopes that this project will bear a result soon and could benefit the country in the next 5-6 years,” he said.

Thailand and Cambodia have been squabbling over a 27,000-square-kilometre territory in the Gulf since the 1970s. The OCA is believed to contain about 10 trillion cubic feet of natural gas and 300 million barrels of crude oil.

The government is planning to pursue talks using MOU44, a memorandum of understanding signed in 2001 (BE 2544) between the two countries. Many nationalists want the agreement scrapped.

Under the MoU, both countries agreed that all territorial claims should be discussed at the same time as the prospects of joint resource development. 

Several parties have voiced concerns that by acknowledging the terms of joint exploration under MOU44, Thailand is at risk of losing its claim on the area permanently.