The foreign ministers of Indonesia and Malaysia will meet to discuss the controversy surrounding the awarding of oil concession in the Sulawesi sea by Petronas to Shell.

Prime Minister Abdullah Ahmad Badawi said that Indonesian President Susilo Bambang Yudhoyono contacted him via telephone today regarding the issue.

He said both leaders agreed that discussions be held between the foreign ministers of the two countries with a view to resolving the issue.

"To prevent any undesirable incidents which may create tension in the relationship between Indonesia and Malaysia, both of us agreed for the matter to be discussed at the diplomatic level, between Malaysian Foreign Minister (Syed Hamid Albar) and the Indonesian Foreign Minister (Hassan Wirayuda).

"Hopefully, in this way, any problem faced will, InsyaAllah, be resolved in a cordial manner," he was quoted as saying by Bernama .

Indonesia recently raised objections over the award of an oil and gas concession in two blocks in the Sulawesi Sea by Petronas to Shell.

Jakarta claimed that the two blocks, located near Malaysia's Pulau Sipadan and Pulau Ligitan, belong to the republic.

Syed Hamid was reported to have said that he would meet his Indonesian counterpart in Jakarta this week.

Meanwhile, Malaysia submitted a protest to Indonesia over the encroachment of an Indonesian warship in Malaysian waters in the vicinity of Pulau Sebatik in the Sulawesi Sea.

Strong ties

In his speech at the Prime Minister's Department this morning, Abdullah said ties between Malaysia and Indonesia remained strong at this time.

"Even though we faced issues relating to illegal immigrants, these have however not affected relations," he added.

The premier said that Kuala Lumpur regards discussions at the diplomatic level as the best approach to resolve the problem.

"This approach reflects the cooperation which exists between the two neighbouring countries," he added.

Abdullah said the approach would also help maintain the good relations between Malaysia and Indonesia.

"This is the spirit that we jointly uphold, and InsyaAllah, we will be able to seek a solution," he added.