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