Memo of Understanding on
Thai-Cambodian joint development of oil and gas resources:
Understanding what exactly it is
By Jon Fernquest 
Sometimes
conflicts
can be resolved
only if both sides step back a little, calm down, and make compromises. The Memo of Understanding (MoU) regarding joint gas and development by Thailand and Cambodia in the Gulf of Thailand was a critical first step in reaching a compromise.
Last week Bangkok Post journalist Boonsong Kositchotethana described in great detail what exactly the MoU is.
There was a lot of misunderstanding about exactly what the MoU is last when it was unilaterally revoked by Thailand (Read article on the confusion).
Also read a previous Bangkok Post article on Thai-Cambodian oil-gas rights in the Gulf of Thailand (Read article)
(Map on right shows the disputed oil and gas development area in the Gulf of Thailand)
Memorandum of Understanding (MoU) -
a informal agreement that provides a framework for cooperation on
activities, establishes policies or procedures of mutual concern,
and/or establishes expectations between two or more parties (See Wikipedia)
a conflict - a fight over something
resolve conflict - end the fight
compromise - when each side gives up something up to make the other side happy and reach an agreement
reaching a compromise - decide on the compromises to be made in order to reach an agreement
critical - important
revoke - end, take away
unilaterally - when one side does something (without other side participating)
unilaterally revoke - when one side decides by itself to end something (like an agreement)
a conflict - a fight over something
resolve conflict - end the fight
compromise - when each side gives up something up to make the other side happy and reach an agreement
reaching a compromise - decide on the compromises to be made in order to reach an agreement
critical - important
revoke - end, take away
unilaterally - when one side does something (without other side participating)
unilaterally revoke - when one side decides by itself to end something (like an agreement)
Tearing up MoU on JDA is so wrong
20/11/2009Boonsong Kositchotethana
The government's tit-for-tat response to Cambodia's appointment of fugitive ex-premier Thaksin Shinawatra as its economic adviser by tearing up the accord to settle disputed waters, raises the serious question whether this serves our country's interests at all.
tearing up the agreement - ending
an agreement suddenly because you are angry
tearing up MoU - ending the MoU suddenly and angrily
tearing up the accord - tearing up the agreement
joint development area (JDA) - an area between two countries such as the sea that the two countries develop together
tit-for-tat - when someone attacks you, then you attack them back and the difficult to end cycle repeats itself (See Wikipedia)
disputed waters - sea areas that two countries both say belong to them
settle disputed waters - when two countries reach an agreement about water areas they both believe they own
tearing up MoU - ending the MoU suddenly and angrily
tearing up the accord - tearing up the agreement
joint development area (JDA) - an area between two countries such as the sea that the two countries develop together
tit-for-tat - when someone attacks you, then you attack them back and the difficult to end cycle repeats itself (See Wikipedia)
disputed waters - sea areas that two countries both say belong to them
settle disputed waters - when two countries reach an agreement about water areas they both believe they own
It's a pity the Abhisit Vejjajiva administration was so quick to cancel the memorandum of understanding (MoU) that would have led to a sharing of the potentially rich hydrocarbons in the territorial claims in the Gulf of Thailand, without first thoroughly deliberating the implications and consequences.
hydrocarbons
- a chemical containing only carbon and
hydrogen, fossil fuels such as petroleum and natural gas,
plastics, waxes, and oils contain these chemicals
territorial claims - areas of land or water that a country claims it owns
deliberating - debating and discussing all aspects of an issue before making a decision
consequences - the things that happen as a result of a decision or event
deliberating the implications and consequences - discussing what might happen if a decision or event occurs
territorial claims - areas of land or water that a country claims it owns
deliberating - debating and discussing all aspects of an issue before making a decision
consequences - the things that happen as a result of a decision or event
deliberating the implications and consequences - discussing what might happen if a decision or event occurs
The government's decision to nullify the MoU reached with Cambodia in 2001 may not be the right means to retaliate against Phnom Penh's growing hostility and Cambodian Prime Minister Hun Sen's siding with Thaksin.
That knee-jerk reaction effectively demolished a foundation on which lay the goodwill and intention of both countries to negotiate for mutually-acceptable terms to open the 26,000-sqkm area for exploration and production while possibly unlocking the age-old disagreement of the maritime boundary.
nullify - end, make
not valid anymore
retaliate against - hurt other people after they hurt you
hostility - being unfriendly, displaying anger at people
knee-jerk reaction - to react immediately in a bad way (without thinking, waiting, and planning response)
foundation - a strong base on which a build a building or system
demolished a foundation - destroy the foundation
goodwill - a friendly and helpful attitude towards other people or countries
intention - what you want to do or achieve
terms of an agreement - the detailed items in an agreement agreed on
mutually-acceptable terms - detailed items in an agreement that both sides agree on
maritime - related to the sea
retaliate against - hurt other people after they hurt you
hostility - being unfriendly, displaying anger at people
knee-jerk reaction - to react immediately in a bad way (without thinking, waiting, and planning response)
foundation - a strong base on which a build a building or system
demolished a foundation - destroy the foundation
goodwill - a friendly and helpful attitude towards other people or countries
intention - what you want to do or achieve
terms of an agreement - the detailed items in an agreement agreed on
mutually-acceptable terms - detailed items in an agreement that both sides agree on
maritime - related to the sea
The absence of an MoU means the framework for both countries to continue to find a solution to turn the disputed area into "a joint development area" (JDA) has been scuttled. The unilateral revocation of the MoU and the worsening relationship between the two countries have raised serious doubts whether the negotiations, which have dragged on over the past eight years, will ever resume in the near future. Clearly, it has diminished any opportunities to recover substantial petroleum deposits - 2 billion barrels of oil and more than 10 trillion cubic feet of natural gas which the World Bank estimates lies under the continental shelves - that could meet Thailand's insatiable energy demand.
a framework - a set
of rules, ideas and beliefs for making decisions and solving problems
joint development area (JDA) -
scuttled - ended
revocation - officially end an agreement
unilateral revocation - when only one side officially ends an agreement
negotiations resume - negotiations start again (after a pause)
substantial petroleum deposits - a lot of oil under the ground or under the sea
cubic feet - a measurement of space used
continental shelves - (See Wikipedia)
insatiable - can never be satisfied
insatiable energy demand - a demand for oil and energy that can never be satisfied
joint development area (JDA) -
scuttled - ended
revocation - officially end an agreement
unilateral revocation - when only one side officially ends an agreement
negotiations resume - negotiations start again (after a pause)
substantial petroleum deposits - a lot of oil under the ground or under the sea
cubic feet - a measurement of space used
continental shelves - (See Wikipedia)
insatiable - can never be satisfied
insatiable energy demand - a demand for oil and energy that can never be satisfied
The potential hydrocarbons in the area, especially natural gas, would be an ideal future source of energy supply for Thailand, which is relying more and more on gas, especially for power generation. More than 70% of Thailand's electricity is generated by gas.
hydrocarbons -
substances
containing only hydrogen and carbon. Fossil fuels are made up of
hydrocarbons. Some hydrocarbon compounds are major air pollutants -
chemicals that cause the air to be polluted and dirty (See Wikipedia)
natural gas - a fuel in the form of a gas used for heating, cooking, and to generate electricity (power) in gas and steam turbines (See Wikipedia)
power generation, generate electricity - the process of creating electricity transmitted to and used in homes and businesses
natural gas - a fuel in the form of a gas used for heating, cooking, and to generate electricity (power) in gas and steam turbines (See Wikipedia)
power generation, generate electricity - the process of creating electricity transmitted to and used in homes and businesses
The Thailand-Cambodia JDA on gas would have served to substitute Thailand's depleting gas reserves, support its bid to diversify its sources of gas supply and strengthen supply security which has been threatened by major shortfalls. In the past several months, Thailand has been rocked by frequent disruptions in natural gas supply which drove the country to the brink of a blackout while reflecting its vulnerability due to excessive dependence on natural gas. During that time, gas deliveries from the Yadana and Yetagun fields in Burma's Gulf of Martaban, and Bongkot and Arthit in the Gulf of Thailand, were halted.
reserves - supply
for future use
gas reserves - a supply of natural gas for future use
depleting gas reserves - when the supplies of gas for future use are used and don't exist anymore
strengthen supply security - take action so that supplies do not run out (are not exhausted)
shortfalls - when the supply is not enough
a blackout - when there is no electricity and therefore no lights
drove the country to the brink of a blackout - almost caused a blackout
vulnerability - weak and easily harmed
excessive dependence - when you need something too much (for your survival)
gas reserves - a supply of natural gas for future use
depleting gas reserves - when the supplies of gas for future use are used and don't exist anymore
strengthen supply security - take action so that supplies do not run out (are not exhausted)
shortfalls - when the supply is not enough
a blackout - when there is no electricity and therefore no lights
drove the country to the brink of a blackout - almost caused a blackout
vulnerability - weak and easily harmed
excessive dependence - when you need something too much (for your survival)
The Thailand-Cambodia JDA would have delivered gas to Thailand at a lower cost and more quickly, thanks to the resources' proximity to the existing pipeline network already in place in Thai waters. Thailand would benefit more if the JDA gas saw the light of day. Given its strong dependence on gas for power generation, petrochemical, industries and automotive fuel, Thailand needs the gas more than the lesser-developed Cambodia does.
Linking the MoU to Thaksin and politics because the MoU was signed on June 18, 2001 when he was in power, in order to justify the MoU's termination, is not a fair statement. Govt spokesman Panitan Wattanayagorn's suggestion that Thaksin might share his considerable knowledge on the subject with Cambodia, is going too far with excessive political motive. The fact is, the MoU is merely a diplomatic paper outlining, in a few paragraphs, a broad framework for both sides to forge mutually-agreed terms for the JDA, leaving production details for later negotiation.
proximity - being
near or close to
pipeline network - a system of pipes running around a country or region
saw the light of day - came into existence
petrochemical - chemicals made from oil
linking X to Y - making a connection between X and Y (such as X caused Y)
justify - provide a reason for
motive - a reason for doing something
political motive - a political reason for doinf something
outlining - giving or sketching a general idea (without giving details)
broad framework - a very general and high level set of rules, ideas and beliefs for making decisions and solving problems
forge - create
mutually-agreed - that all agree about
forge mutually-agreed terms - create deatails for an agreement that all agree about
pipeline network - a system of pipes running around a country or region
saw the light of day - came into existence
petrochemical - chemicals made from oil
linking X to Y - making a connection between X and Y (such as X caused Y)
justify - provide a reason for
motive - a reason for doing something
political motive - a political reason for doinf something
outlining - giving or sketching a general idea (without giving details)
broad framework - a very general and high level set of rules, ideas and beliefs for making decisions and solving problems
forge - create
mutually-agreed - that all agree about
forge mutually-agreed terms - create deatails for an agreement that all agree about
Furthermore, the MoU with Cambodia was originally proposed by Thai bureaucrats in charge of the Foreign, Mineral Resources and Energy ministriess, who were aware of the JDA concept that had been successfully adopted by Thailand and Malaysia in their 7,250-sqkm tract well before the Thaksin era. The JDA concept, which basically allows the two countries to share benefits arising from the area equally, was seen as a workable solution to quicken the pace of petroleum development, rather than struggle to redefine boundaries, which has proved to be no easy task even for long-time friendly neighbours.
It took more than a decade for Thailand and Malaysia to finalise terms for the JDA accord based on the MoU they initialled in 1979 and the gas from the once-disputed area has been flowing to the two countries for about five years now. Thailand and Cambodia really should leave the JDA issue out of their current diplomatic/political spat.
Boonsong Kositchotethana is Deputy Assignment Editor (Business), Bangkok Post.
[Note: Italics added to original article]
bureaucrats - high
level officials working in government departments (usually stick
tightly to rules)
a tract - a piece of land
a workable solution - a way to end the problem that will really work (not just an arrangement that will soon fail)
quicken the pace - go or move faster
petroleum development - the process of finding and using new oil sources
redefine boundaries - change and redraw the boundaries (limiting the area that belongs to one side)
finalise terms - make a final agreement about the details of an agreement
a diplomatic/political spat - a diplomatic/political argument
a tract - a piece of land
a workable solution - a way to end the problem that will really work (not just an arrangement that will soon fail)
quicken the pace - go or move faster
petroleum development - the process of finding and using new oil sources
redefine boundaries - change and redraw the boundaries (limiting the area that belongs to one side)
finalise terms - make a final agreement about the details of an agreement
a diplomatic/political spat - a diplomatic/political argument
(Source: Bangkok Post, Tearing up MoU on JDA is so wrong, 20/11/2009, Boonsong Kositchotethana, link)
