Competing offshore energy claims head toward Malaysia, Indonesia dispute 

KUALA LUMPUR (AP): Malaysia and Indonesia appear headed toward a
territorial dispute, with their national oil companies laying claim to
potentially rich offshore oil-and-gas blocks off Borneo island.

Malaysia's national oil company, Petronas, said in a statement
Thursday that it "was in advance stages of awarding the
ultra-deepwater blocks ... which is within the Malaysian territorial
boundary."

But Pertamina, the Indonesian oil company, is also planning to award
exploration contracts for the two blocks, located about 150 kilometers
(90 miles) off the Malaysian eastern state of Sabah and Indonesia's
Kalimantan province, the New Straits Timesnewspaper reported.

Indonesian officials in Kuala Lumpur declined to comment, referring
the matter to the government in Jakarta.

Zainal Abidin Osman, a senior Foreign Ministry official, said that
Malaysia was ready to contest any overlapping claim to the area.

"Malaysia's rights over these areas have never been disputed by any
country before as they are clearly ours," Zainal was quoted as saying
by the New Straits Times.

The blocks lie near the islands of Sipadan and Ligitan, which for
years were the subject of a dispute between Malaysia and Indonesia.
The International Court of Justice handed Malaysia sovereignty in
2002.

Malaysia has also been stepping up its maritime claims around a zone
rich in oil and natural gas near the Borneo island state of Sarawak
that has been disputed by neighboring Brunei.

The ambiguity resulted in a confrontation in March last year, when a
Malaysian navy patrol vessel ordered out an exploration team from
Total, the French company awarded the exploration contract by Brunei.
Subsequent negotiations on production-sharing are believed to have
stalled. (**)


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