The Thai cabinet's cancellation of the 2001 agreement, which seeks to develop a framework to jointly explore hydrocarbons in parts of the Gulf of Thailand where the claims of Thailand and Cambodia overlap, had long been expected and follows two rounds of armed conflict between the two countries last year. 

The withdrawal was an election campaign pledge of Thai Prime Minister Anutin Charnvirakul, who earlier this year rode a wave of nationalism stoked by the fierce fighting with Cambodia to become the first Thai premier to be reelected in two decades. 

"Cancelling the deal is not related to the border conflict with Cambodia, but part of my policy. It has been 25 years and there has been no progress," Anutin told reporters, adding that Cambodia would be informed of the decision. 

Cambodia's government did not immediately respond to a request for comment on Tuesday's announcement. 

Phnom Penh had recently described Thailand's plan to unilaterally withdraw from the agreement, known as Memorandum of Understanding 44, as "deeply regrettable", adding it remained "firmly and consistently committed" to it. 

Despite multiple rounds of meetings, MOU 44 has made little progress since it was signed, with the process derailed by political instability in Thailand, intermittent disputes between the two neighbours and fierce opposition from Thai nationalists.

The two-track agreement had proposed creating a framework to allow offshore oil and gas to be jointly explored in overlapping areas while parallel negotiations take place on formal demarcation.

Thai officials have said they intend to rely on terms set out in the UN Convention on the Law of the Sea, or UNCLOS, for any future negotiations.

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