Former premier Tun Dr Mahathir Mohamad has taken to task Wisma Putra and his successor Tun Abdullah Ahmad Badawi for the loss of USD100 billion (RM320 billion) of Malaysia?s oil in a deal with Brunei to get back Limbang.
In a posting on his blog titled "Malaysia?s generosity" which quoted reports in The Edge Financial Daily, The Edge and the Brunei Times, Mahathir said a substantial oil producing offshore area in the South China Sea, namely Block L and Block M, are no longer a part of Malaysia. In an immediate response carried by news portals Abdullah dismissed Mahathir?s allegation. He said Malaysia and Brunei agreed to establish a final and permanent sea boundary in an exchange of letters on March 16, 2009 aimed at settling the boundary issues between the two nations, including overlapping claims over the two blocks. He said though sovereign rights to the resources belong to Brunei, Malaysia will be allowed to participate, on a commercial basis, to jointly develop the oil and gas resources in this area for a period of 40 years.
Said Mahathir: "It would seem that the loss of a huge oil producing area that had apparently belonged to Malaysia is okay."
He said Block L and Block M had been claimed by Malaysia based on historical facts.
"Accordingly, Petronas entered into a production sharing contract with Murphy Oil to start drilling to produce oil," he said.
The reserves are estimated to amount to almost one billion barrels.
"Abdullah Badawi negotiated with the Sultan to get back Limbang in Sarawak, and in return he agreed to surrender the two blocks to Brunei," Mahathir alleged. "No Petronas representatives were present, only foreign office staff and the foreign affairs adviser to the PM."
"As we all know, Abdullah triumphantly announced that he had settled the Limbang claim with Brunei," Mahathir said, adding that there was however no mention of the two blocks.
Mahathir said when Brunei disclaimed that they had agreed to give up Limbang, the foreign office and Abdullah did not rebut Brunei's statement.
"Now it is made clear that the two blocks are no longer a part of Malaysia," said Mahathir.
Abdullah has caused Malaysia to lose at least US100 billion dollars (about RM320 billion) of Malaysia's oil in this agreement, he said.
Mahathir also demanded an explanation from Wisma Putra on why it did not stop Abdullah.
The Edge Financial Daily on April 23 reported that Murphy Oil Corporation?s production sharing contracts (PSC) for the two blocks of offshore exploration areas had been terminated by Petroliam Nasional Bhd (Petronas).
The PSC, awarded in 2003 to Petronas Carigali Sdn Bhd and Murphy, were formally terminated on April 7, 2010.
The El Dorado, Arkansas-based Murphy Oil announced to the New York Stock Exchange that the PSC was terminated after Malaysia and Brunei determined that the designated offshore areas were no longer a part of Malaysia.
The US-based company said on its website on April 21 that it was informed by Petronas following the execution of the exchange of letters between Malaysia and Brunei on March 16, 2009, that the offshore exploration areas designated as Block L and Block M "were no longer a part of Malaysia".
The Brunei Times, last week, quoted that country?s Second Foreign Affairs and Trade Minister Pehin Orang Kaya Pekerma Dewa Dato Seri Setia Lim Jock Seng as saying that Brunei can start drilling in offshore Blocks J and K soon as the Sultanate retains ownership of the two blocks under a deal made last year with the Malaysian government.
He said: "This has been sorted out during last year's agreement and is nothing new".
