Malaysian PM: Petronas exploration in South China Sea to continue

Anwar Ibrahim, Malaysia's prime minister, reiterated on Tuesday that the state-owned energy company Petronas would continue to conduct oil exploration in Malaysia's Exclusive Economic Zone (EEZ) of the South China Sea despite China's objections.

He told the parliament that this includes exploration activities for Petronas Kasawari Gas Development off Sarawak State on Borneo.

Anwar stated, "We will continue to discuss with all countries. We will not shut the door."

He said Malaysia has territorial disputes with many neighbours including Thailand, the Philippines and Indonesia and that its differences with China are being overemphasized.

"We have problems, but these do not affect our diplomatic relations." "These issues don't affect our close friendships and trade relations with our neighbors," he said.

Anwar stated that Malaysian exploration activities last month were conducted within Malaysia's territory and not to provoke or be hostile towards China. This was in response to the media leakage of a diplomatic letter from Beijing.

Beijing claimed in a note carried by a Philippine newspaper that Malaysian oil and gas explorations in the South China Sea violated its territorial integrity.

China claims sovereignty over nearly the entire South China Sea. It has also deployed a fleet to Southeast Asia including the EEZs in Malaysia, Brunei and the Philippines, complicating exploration efforts by these countries.

China has rejected a 2016 ruling of the Permanent Court of Arbitration at The Hague, which said that Beijing's claims were not based on international law.

Petronas has had many encounters with Chinese vessels during the past few years in its oil and gas projects on the South China Sea.

In a report published this month, the Asia Maritime Transparency Initiative (a U.S.-based think tank) said that Chinese coastguard vessels made frequent visits this year to Malaysian exploration wells offshore Sarawak, passing up to 1,000 metres (0.62 miles) away from gas production platforms in Timi, Kasawari and Jerun.

Petronas began production at the Kasawari gas field in August of this year. The estimated reserves are 10 trillion cubic foot. (Reporting and writing by Danial Azhar, Ashley Tang and Rozanna Latiff. Editing and proofreading by Jacqueline Wong, John Mair and Jacqueline Wong)

(source: Reuters)