Thai, Cambodian PMs meet as border tension eases

HUA HIN, Thailand, Thai Prime Minister Abhisit Vejjajiva met his Cambodian counterpart on Friday as tension along their disputed border has eased, vowing to start energy cooperation in the overlapping Gulf of Thailand.

Abhisit said both countries had agreed to set up panels of technical experts to work on demarcation of the gas-rich area.

"Our understanding has been improved a lot recently and we are looking into possibilities to start our energy cooperation," Abhisit told reporters.

Cambodia's exploration area covers 37,000 square km (14,300 sq miles), while another 27,000 square km are disputed with Thailand.

Cambodian Prime Minister Hun Sen said this month his government was preparing a framework to manage its energy revenues when offshore oil fields start producing from 2010.

In November last year, U.S. major Chevron Corp (CVX.N) and operator of Block A in the Gulf of Thailand, said Cambodia's first oil was unlikely to be onstream before 2010 at the earliest.

Chevron operates the block with a 55 percent interest, while Mitsui Oil Exploration, a unit of Mitsui & Co (8031.T), holds a 30 percent stake and South Korea's GS Caltex a 15 percent stake. Abhisit said he would expand cooperation with Cambodia to trade and tourism, aiming for a one-visa-two-country project for tourists who want to visit both countries at once.

Phnom Penh and Bangkok agreed earlier this month to withdraw the remaining troops on their disputed border to avoid a repeat of last year's armed clashes near a 900-year-old Hindu temple.

Hun Sen told reporters this month both countries would jointly demarcate the jungle-clad area where four soldiers died in a firefight last October.

The Preah Vihear temple, or Khao Phra Viharn as it is known in Thailand, sits on an escarpment that forms the natural border between the two countries and has been a source of tension for generations.

The International Court of Justice awarded it to Cambodia in 1962, but the ruling did not determine the ownership of 1.8 square miles (4.6 sq km) of adjoining scrubland, leaving considerable scope for disagreement. (Reporting by Nopporn Wong-Anan; Editing by Valerie Lee)