By Pooky, this blog economics journalist
The Thai foreign minister, Kasit, said an agreement on the way to resolve Thai and Cambodia oil and gas area dispute have been terminated.
“The agreement on the way to resolve the dispute was passed by the Taksin government who has a direct interest in the resolution and it is now terminated,” said Kasit.
The World Bank estimated that the Gulf of Thailand area in dispute is rich in oil and gas. Negotiations have fallen through as Thailand have demanded 80% while Cambodia demanded a 50%-50% split.
Cambodia have granted French and Japanese oil interest exploring rights in the area, but advisor to the Thai government told the government that those interest will not explore the area because of the threat of war means those interest can not get insurance.