Overview
Cambodia has formally approved the United Nations Convention on the Law of the Sea (UNCLOS), with the Royal Government directed to continue all necessary procedures for implementation. For businesses and investors operating in or entering Cambodia’s maritime economy, whether in offshore energy, fisheries, shipping, or subsea infrastructure, UNCLOS provides the internationally recognised legal architecture that underpins commercial activity at sea. Below, we set out the provisions of most direct commercial relevance.
1. Offshore Energy and Natural Resources – A Bankable Legal Framework
The most commercially significant feature of UNCLOS for Cambodia is the formal assertion of sovereign rights over an Exclusive Economic Zone (EEZ) of up to 200 nautical miles.
Within the EEZ, Cambodia holds sovereign rights to explore, exploit, conserve, and manage all living and non-living natural resources of the water column, the seabed, and the subsoil, as well as the right to pursue other economic activities, including the production of energy from water, currents, and winds. This encompasses offshore oil and gas, seabed minerals, and renewable energy installations.
On the continental shelf, Cambodia exercises exclusive sovereign rights to explore and exploit its natural resources, including seabed minerals and sedentary species, meaning no third party may undertake such activities without Cambodia’s express consent. This exclusivity is critical for licensing rounds and the enforceability and stability of upstream contracts. Further, Cambodia holds the exclusive right to authorise and regulate drilling on its continental shelf for all purposes, thereby establishing clear regulatory competence for upstream oil and gas operators.
Within the EEZ, Cambodia also has the exclusive right to authorise and regulate artificial islands, installations, and structures built for resource, energy, and other economic purposes, including the establishment of safety zones (generally up to 500 metres) and the exercise of jurisdiction over customs, fiscal, health, safety, and immigration matters on those installations. This is directly relevant to the bankability and permitting of offshore projects, providing investors and lenders with a clear and internationally anchored regulatory framework.
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