Global Fuel Crisis Drives Cambodia’s $300B Energy resources as Iran War Disrupts Oil

Cambodia is racing to unlock $300B in offshore oil and gas as the Iran war triggers the worst global energy crisis in history. The Silicon Review reports on the maritime dispute with Thailand and the push to secure energy resources independence.

The oil shock from the Iran conflict has created renewed urgency for Cambodia to resolve a decades-old maritime dispute with Thailand and unlock undersea energy resources worth an estimated $300 billion, Cambodia's energy minister said on Wednesday.

Iran's grip on the Strait of Hormuz, through which about one-fifth of global oil supply passes, has turned the conflict into the worst-ever global energy crisis. Cambodia is relying on renewable sources including hydropower and solar to weather the current crisis, but its hopes for further industrialization rest on fossil fuel assets, Minister of Mines and Energy Keo Rottanak told Reuters.

"Before the crisis, perhaps all nations could take energy security a bit more lightly," he said. "But the ongoing crisis, especially the pressure from the Strait of Hormuz, has only brought energy security of any nation into sharper focus."

Cambodia has been in a boundary dispute with Thailand for decades, discord that sparked two bouts of fighting last year that killed close to 150 people before a ceasefire in December. An area of around 27,000 square kilometers in the Gulf of Thailand claimed by both countries is estimated to hold around 311 billion cubic meters of natural gas alongside large quantities of oil.

International oil and gas majors, including TotalEnergies, are keen to start offshore exploration if the neighbours resolve their disagreements. Harnessing these resources would be a win-win for both nations, Keo Rottanak said.

Despite Cambodia's protests, Thailand unilaterally terminated a 25-year-old joint exploration agreement this month, arguing the framework had made no progress. Cambodia will now rely on a compulsory conciliation process under the United Nations Convention on the Law of the Sea (UNCLOS) to settle the maritime boundary.

Given the years needed for exploration and development, a swift resolution is crucial. "If you are going to wait for decades more, the chances of attracting financing to do oil and gas exploration may not be there," Keo Rottanak warned. "And large firms are aware of that."

As the global energy crisis intensifies pressure on Cambodia to tap its $300 billion offshore resources, The Silicon Review examines how the Iran war is reshaping Southeast Asia's energy security calculations and why resolving the maritime dispute with Thailand has become a national priority.