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Business Fortune
05 September, 2024
Malaysia's oil and gas South China Sea exploration will continue, according to Prime Minister Anwar Ibrahim's statement on Thursday, despite Beijing's assertions that Malaysia is encroaching on its territory.
Speaking from his official tour to Russia, Anwar stated that Malaysia's oil and gas exploration efforts were within its borders and had no intention of offending China, with which it maintains cordial relations.
Anwar stated that Malaysia will undoubtedly need to operate in their waters and secure economic advantages, including oil drilling, within their territory during a televised news conference in Vladivostok. He continued by saying that they have never ruled out having talks (with China). However, it does not imply that they must cease operations in their region.
The Malaysian Foreign Ministry said on Wednesday that it would investigate the leak of a private diplomatic message from the Chinese Foreign Ministry. The letter was released by a Philippine news site, and Beijing claimed that it breached its territory because Malaysia was digging for oil and gas in the South China Sea.
The Philippines, Brunei, Malaysia, Taiwan, and Vietnam's 200 nautical mile exclusive economic zones (EEZs) are partially surrounded by China's claimed sovereignty, which makes their energy exploration operations more difficult and makes the South China Sea territorial dispute a difficult one. An EEZ gives a nation sovereign rights to harvest natural resources from those waters, but it does not signify sovereignty under international law.
In Malaysia's Exclusive Economic Zone (EEZ), the national energy company Petronas, also known as Petroliam Nasional Berhad, manages oil and gas fields. It has had multiple run-ins with Chinese warships in recent years.
Without giving specifics, Anwar stated that China had sent "one or two" protest notes to Malaysia asking it to halt its oil exploration efforts. However, he emphasized that the government would keep explaining its stance to Beijing.