Bangkok: Thailand's government on Tuesday terminated a 2001 Memorandum of Understanding with Cambodia that was meant to provide a bilateral framework for resolving overlapping maritime territorial claims.

Cambodia said it regretted the Thai Cabinet's decision but would continue trying to resolve the issue.The two governments signed the agreement to peacefully pursue maritime boundary delimitation and provide a framework for jointly managing marine resources in accordance with international law. But they failed to make any progress after five rounds of talks over the past two decades.

The decision to terminate, which does not legally take effect until Thailand sends a formal notification letter to Cambodia, ended hopes in both countries that resolving the competing claims would allow exploitation of offshore oil and gas resources in the disputed area. Thailand's decision to abrogate the agreement comes after a sharp deterioration of relations and armed combat with Cambodia last year. The countries fought over competing claims to territory along the land border in July and December. agencies