Oil and gas exploration activity to go on in South China Sea

PETRONAS will continue with its oil and gas exploration in the South China Sea despite overlapping claims by China over the area, says Prime Minister Datuk Seri Anwar Ibrahim.

He said this was because Malaysia considered the area, where the exploration project was being carried out, to be in its territorial waters.

He added the issue of overlapping claims in the South China Sea was raised by both countries.

“PETRONAS has started large-scale operations in an area claimed by China. I raised this with Premier Li Qiang and Chinese President Xi Jinping. We consider it Malaysian territory.

“As such, PETRONAS will continue with its exploration in the area,” he said in reply to a supplementary question raised by Datuk Seri Takiyuddin Hassan (PN-Kota Baru). Anwar was referring to his recent official visit to China.

PETRONAS has one of its biggest oil platforms in the South China Sea.

While Anwar did not name the specific block of the sea that is being contested, it is likely he was referring to the development of the Kasawari gas field in the South China Sea in Block SK316, off Sarawak.

PETRONAS Carigali, a wholly owned subsidiary of the national oil company, is the developer and operator of the Kasawari gas field.

First discovered in 2011, Kasawari has been under development for several years and is estimated to hold about three trillion cubic feet of gas resources.

Kasawari is scheduled to come on stream this year and is expected to produce up to 900 million cubic feet of gas per day. Over the past few years, Beijing has been persistent in challenging its neighbours’ oil and gas activities within their own exclusive economic zones in the South China Sea.

The “nine-dash line” area claimed by China covers a large swathe of the South China Sea, which overlaps with the exclusive economic zones of Brunei, Indonesia, Malaysia, the Philippines, Taiwan and Vietnam.

Meanwhile, Anwar reiterated Malaysia’s openness to talks with China over the overlapping claims.

“We cannot avoid negotiations as Asean feels all claims must be resolved through negotiations.

“For the time being, Malaysia is firm that the area is our territory.”

On the presence of Chinese vessels in the area, Anwar said China claimed their ships were in international waters.

He said Wisma Putra would monitor the situation and issue a protest note if there was encroachment in Malaysian territorial waters.