Brunei is the rightful owner of the two oil blocks off the Sabah coast, namely Block L and Block M, but Malaysia will have its share of revenue produced from oil and gas explorations there, Foreign Minister Anifah Aman said.

Explaining the dispute, he said the revenue-sharing was possible through the ‘Commercial Arrangement’ agreed by leaders of the two countries in the ‘Letters of Exchange' signed on March 16 last year.

oil exploration in south east asia However, both countries were still discussing the ratio of the revenue as Brunei had the sovereign rights to the two oil blocks, he told reporters when met at the Parliament lobby today.

"If we look strictly at the interpretation of the law based on Unclos (United Nations Convention on the Law of the Sea) 1982, it clearly belongs to Brunei.

"We have consulted some legal opinions, well-known maritime lawyers and it does not need a brilliant person to interpret that this one belongs to Brunei," he said when asked to explain his reply to a question by Opposition Leader Anwar Ibrahim (PKR-Permatang Pauh) in the Dewan Rakyat today.

 

Anwar had asked the government to state the validity of the decision of the federal government to hand over oilfields Block L and Block M to Brunei, and why the issue of sovereignty of territorial waters of that area was not referred to Parliament and the Sabah and Sarawak state assemblies.

‘A gesture of friendship’

"These (the blocks) belong to them, so how can we dictate something? (Brunei might say that) if you have reasonable request, then maybe, I will consider [...] but if you demand, of course, we would say it is ours [...] why should we succumb to your demand?

"What Brunei has agreed in principle is on sharing [...] it's not a matter of how many percent, but most important is that they have extended a gesture of friendship, it's not so much on dollars and cents," said Anifah.

Earlier, when replying to a question from Anwar, Anifah explained that the elements contained in the 'Letters of Exchange' between the leaders of the two countries, especially involving the maritime and land borders of Malaysia and Brunei, were valid and not in conflict with Article Two of the federal constitution, as claimed by certain quarters.

He said, at the moment, both countries were in the process of implementing the elements contained in the letters.

 

– Bernama