Tuesday, January 17, 2006

Oil & Gas: Malaysia seeks closer cooperation with Indonesia on Sulawesi Sea deposits

Malaysia's Prime Minister, Datuk Seri Abdullah Ahmad Badawi, has said that Malaysia and Indonesia should work together to the rich oil and gas deposits believed to lie beneath the Sulawesi Sea.

Both countries have territorial claims on the Sulawesi Sea, and last year tensions increased as both Malaysia and Indonesia, awarded overlapping oil and gas concessions in waters off the Sabah and East Kalimantan coasts.

The Prime Minister told local media, "By having cooperation between (Malaysian oil corporation) Petronas and (Indonesian national oil company) Pertamina does not mean we want to put off talks on the territorial claims. The issue has to be discussed."