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Mahathir had bullied Brunei for past 20 years?

Malaysia under Dr. Mahahtir had disputed these two blocks are our exclusive economic zone.

Why suddenly Pak Lah disclaimed sovereign rights? Any new change in the UN Convention of the Law of the sea 1982?

Do you believe Brunei is so generous to share USD100 billion oil reserves with Malaysia IF these two blocks are rightfully theirs?

Or Malaysia is bullying Brunei with our military power?

When the state assembly of Sabah and Sawarak are informed about this matter?

Wisma Putra confirms that 2 oil-rich areas will be jointly developed

Brunei is entitled to exercise sovereign rights over the area under the provisions of the UN Convention of the Law of the Sea (Unclos) 1982: Wisma Putra

PETALING JAYA: Brunei has sovereign rights over two oil-rich areas under the provisions of the UN Convention of the Law of the Sea (Unclos) 1982 and the areas would be jointly developed with Malaysia, said the Malaysian Foreign Ministry in a statement.

As such, the “handing over” of the two petroleum blocks by Malaysia to Brunei via the Exchange of Letters signed in 2009 was in line with international law, the statement said Monday.

“Malaysia’s oil concession Blocks L and M which coincided with Brunei’s Blocks J and K are recognised under the Exchange of Letters as being situated within Brunei’s maritime areas and over which Brunei is entitled to exercise sovereign rights under Unclos,” it said.

It said the Government terminated the production sharing contracts over the two blocks to Petronas Carigali Sdn Bhd and Murphy Oil that was awarded in 2003 after the Letters of Exchange were signed in 2009.

The letters also provided for a commercial arrangement to develop the area jointly with Petronas, the statement said.

The controversy over the two blocks arose after former Prime Minister Tun Dr Mahathir Mohamad, in a blog posting, asked why the two blocks no longer belonged to Malaysia.

He alleged that former Prime Minister Tun Abdullah Ahmad Badawi, who together with Sultan of Brunei Sultan Hassanal Bolkiah signed the Exchange of Letters, had given away the blocks to Brunei in 2009 in exchange for Brunei dropping its claims on Limbang in Sarawak.

Abdullah, who refuted this, said in a statement that Malaysia and Brunei had agreed to establish a final and permanent sea boundary in an exchange of letters on March 16, 2009.

He had said that, while sovereign rights to the resources in the area now belonged to Brunei, the agreement included an arrangement under which Malaysia was allowed to participate commercially for a period of 40 years.

On the land boundary, both sides agreed to a joint survey to demarcate the agreed boundary that would be final and permanent, he had said.

Below is the full text of the statement from the Foreign Ministry:

“The Exchange of Letters between YAB Dato’ Seri Abdullah Haji Ahmad Badawi, Prime Minister of Malaysia, and His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah on 16 March 2009, represents an agreement which has settled various outstanding issues between the two countries.

The key elements are the final delimitation of maritime boundaries between Malaysia and Brunei Darussalam, the establishment of a Commercial Arrangement Area (CAA) for oil and gas, the modalities for the final demarcation of the land boundary between Malaysia and Brunei Darussalam, and unsuspendable rights of maritime access for nationals and residents of Malaysia across Brunei Darussalam’s maritime zones.

With regard to the maritime areas, the Exchange of Letters established the final delimitation of territorial sea, continental shelf and exclusive economic zone of both States.

Malaysia’s oil concession Blocks L and M which coincided with Brunei Darussalam’s Blocks J and K are recognised under the Exchange of Letters as being situated within Brunei Darussalam’s maritime areas, over which Brunei Darussalam is entitled to exercise sovereign rights under the relevant provisions of the United Nations Convention on the Law of the Sea 1982 (UNCLOS 1982).

The establishment of the CAA incorporating these Blocks provides for a sharing of revenues from the exploitation of oil and gas in the CAA between the two States.

The termination of the Production Sharing Contracts covering Blocks L and M which were awarded by PETRONAS to Petronas Carigali Sdn Bhd and Murphy Oil in 2003 is in accordance with the establishment of the CAA as provided for in the Exchange of Letters.

The Exchange of Letters is the culmination of 20 years of tough negotiations between Malaysia and Brunei Darussalam on various issues including maritime boundaries.

The contents of the Exchange of Letters between the leaders of the countries were approved by the Malaysian Cabinet on 11 February 2009.

The State Governments of Sabah and Sarawak were consulted and fully briefed on the contents of the Exchange of Letters.

The Exchange of Letters resulted in a new beginning in the bilateral relations between the two States.

The Exchange of Letters which resolved the outstanding bilateral issues between Malaysia and Brunei Darussalam through amicable settlement will strengthen the existing relationship and enhance good neighbourliness between the two States.”

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