Beijing 'Concerned' about Petronas' Exploration Activities in Disputed South China Sea

Rozanna Latiff
Tuesday, April 4, 2023

 Malaysian Prime Minister Anwar Ibrahim on Tuesday said Beijing had expressed concerns about energy activities by Malaysian state firm Petronas in the South China Sea, even though Kuala Lumpur believes the projects are in its territory.

Anwar's remarks come after he opened the door for negotiations with China earlier this week, in a sign of mounting pressure on Malaysia's energy operations in waters that Beijing claims as its own.

China claims sovereignty over almost the entire South China Sea, through which about $3 trillion worth of ship-borne trade passes annually. Malaysia, Brunei, the Philippines, Taiwan and Vietnam have some overlapping claims.

Petronas operates oil and gas fields within Malaysia's 200-mile exclusive economic zone (EEZ) and has in recent years had several encounters with Chinese vessels.

China was worried that "Petronas has carried out a major activity at an area that is also claimed by China," Anwar said, responding to a parliamentary question about his discussions on the South China Sea during his visit to China last week.

"I stressed... that Malaysia sees the area as Malaysian territory; therefore, Petronas will continue its exploration activities there," Anwar said, without specifying an offshore project or a location.

But Malaysia is open for negotiations "if China feels this is their right", Anwar said.

China would like to work with Malaysia to handle differences in the South China Sea through dialogue and consultation in an appropriate manner, its foreign ministry said on Tuesday.

Petronas declined to comment.

China claims its territory via a "nine-dash line" on its maps, which cuts into the EEZs of Vietnam, the Philippines, Malaysia, Brunei and Indonesia.

The Permanent Court of Arbitration, however, ruled in 2016 that the nine-dash line, which stretches as far as 1,500 km off its coastline, has no legal basis.

U.S. think tank, the Asia Maritime Transparency Initiative (AMTI), last week said a Chinese coast guard vessel was for the past month operating near Petronas' Kasawari gas development off Malaysia's Sarawak state, and came as close as 1.5 miles of the project. A Malaysian navy ship was in the area, AMTI said.

China foreign ministry on Monday said they were not aware of the specific incident but said the conduct of the China coast guard is beyond reproach.

The Kasawari field holds an estimated 3 trillion cubic feet of gas reserves and is expected to start production this year.

Anwar, in his parliamentary comments, said China believes its ships were in international waters.

Malaysia's foreign ministry will issue a protest note if there were "collisions" between Malaysian and Chinese vessels there, Anwar said.

In response, the Chinese foreign ministry said Beijing safeguards its "legitimate rights and interests" in the South China Sea.

(Reuters - Reporting by Rozanna Latiff; additional reporting by Laurie Chen in Beijing; Writing by A. Ananthalakshmi; Editing by Martin Petty)

Categories: Drilling Industry News Activity Asia South China Sea

Related Stories

Seatrium Targets $40M Cost Savings in Continued Divestment Drive

Dolphin Drilling, Vantris Ink Marketing Deal for Blackford Dolphin Semi-Sub

Mubadala Hires SLB for Deepwater Drilling Services Offshore Indonesia

EnQuest Secures Extension for Vietnam's Offshore Block

QatarEnergy, Petronas Ink 20-Year LNG Supply Agreement

Philippines Makes First Offshore Gas Discovery in Over a Decade

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Velesto Agrees $63M Jack-Up Drilling Rig Sale with Indonesian Firm

Blackford Dolphin Semi-Sub to Keep Drilling Offshore India

SED Energy’s GHTH Rig Kicks Off Ops for PTTEP

Current News

Seatrium Targets $40M Cost Savings in Continued Divestment Drive

Inpex Secures Environmental Approval for Indonesia’s Abadi LNG Project

MISC Secures Long-Term Charter for Papua New Guinea's First FSO

Dolphin Drilling, Vantris Ink Marketing Deal for Blackford Dolphin Semi-Sub

Saipem Agrees $272M Deal to Acquire Deep Value Driller Drillship

DUG Hooks Multi-Client Seismic Reprocessing Survey off Malaysia

MISC, PTSC Extend Ruby II FPSO Operations Offshore Vietnam

Petronas Takes Operatorship of Oman’s Offshore Block 18

Mubadala Hires SLB for Deepwater Drilling Services Offshore Indonesia

Malaysia Offers Nine Exploration Blocks in 2026 Bid Round

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com