Murphy Oil’s interests terminated

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Reports say that Petronas has terminated production sharing contracts in two blocks as the areas are “no longer a part of Malaysia”.

See a Reuters report here and an Edge report here.

Murphy Oil was informed by Petronas that the two blocks are no longer a part of the country following an agreement between Malaysia and Brunei, according to the Oil and Gas Journal.

According to the Journal, the blocks SB L and SB M “overlapped with Brunei’s Blocks J and K, which had been awarded to Total SA and Royal Dutch Shell PLC”. Overlap?

We are not talking about insignificant assets. Block J is projected to produce more than 150,000 to 200,000 barrels per day, which could double Brunei’s oil production, the Total E&P Borneo BV general manager had said.

The production sharing contracts covering L and M were awarded in 2003 to Petronas Carigali Sdn Bhd and Murphy, reported Business Wire. The contracts were terminated on 7 April 2010.

Could we have more details of the agreement last year to resolve the dispute with Brunei? Malaysia and Brunei reportedly exchanged letters on 16 March 2009. What was the quid pro quo? It is of public interest.

Meanwhile, talks on the land border demarcation were expected to start this month.

READ MORE:  In uncharted waters, 1MDB’s fourth auditor faces formidable task
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Oxymoron
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No longer? We gave up sovereignty just like that?…

Iron
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Iron

We gave up sovereignty just like that?

Hmm … I wonder why there is no similar outcry when thm Indons come over here and in couple of years they become Bumiputras.

romerz
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The jist of it is Badawi gave away Blocks L & M to Brunei. He had claimed that it was in exchange for Brunei dropping claims on Limbang but Brunei refutes that.

So nobody knows what they were given away for, much to the detriment of Sabahans.

I’m not the only one asking questions here;
http://romerz.blogspot.com/2010/04/losing-territory.html
http://romerz.blogspot.com/2010/04/follow-up-on-losing-territory.html

But Petronas advisor Dr M is also asking the same questions;
http://chedet.co.cc/chedetblog/2010/04/malaysias-generosity.html

Dare I say someone from the ruling elites might have benefited from this surrender of territory? It wouldn’t surprise me as the amounts involved here are MASSIVE!

Andrew
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Andrew

Dr. Mahathir has a view. And it cuts through the fuzziness of Malaysian Officialdom. See here:

http://chedet.co.cc/chedetblog/2010/04/malaysias-generosity.html
.

telur dua
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telur dua

TDM is accusing Sleeping Beauty of giving it away in exchange for nothing. LOL. Bloody generous, I would say.

Iron
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Iron

Meaning what?

Our oil reserve just shrank by how many percent again?

How long before Malaysia becomes a NET importer of crude oil?

Gerakan K
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Gerakan K

I heard from news that there is sizeable new oil field in Malaysia. Don’t be too pessimistic.

nkkhoo
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That is most damn and stupid argument. Whether Malaysia has another trillion barrel oil reserves is nothing to so with “sold out” your country.

I thought such land sovereignty matter must be approved by our parliament first….

Gerakan K
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Gerakan K

my comment refers to the possibility of being net importer. Naughty kid khoo, you failed to provoke me. Try again next time.