AP Worldstream: Indonesia protests Malaysia's oil pacts in disputed waters: “Indonesia on Friday protested Malaysia's move to award oil production sharing contracts to Royal Dutch/Shell Group of Cos. in two offshore blocks, which Indonesia claims are within its territory. The step is "a violation to Indonesia's sovereignty," the Ministry of Foreign Affairs said in statement.” (ShellNews.net) 25 Feb 05

Feb 25, 2005

Indonesia on Friday protested Malaysia's move to award oil production sharing contracts to Royal Dutch/Shell Group of Cos. in two offshore blocks, which Indonesia claims are within its territory.

The step is "a violation to Indonesia's sovereignty," the Ministry of Foreign Affairs said in statement.

Malaysia's national oil company, Petroliam Nasional Bhd., earlier this month awarded contracts to two of Shell's Malaysian units and to Petronas Carigali Sdn. Bhd. for deep-water blocks ND6 and ND7, off the coast of Malaysia's Sabah state on Borneo Island.

The blocks are near Sipadan and Ligitan islands, disputed for years between Malaysia and Indonesia. The International Court of Justice handed Malaysia sovereignty over the islands in 2002.

However, Indonesia claims that Malaysia's water territory extends up to just 19 kilometers (12 miles) from the islands.

Borneo, the world's third-largest island, is shared by portions of Malaysia and Indonesia, and all of Brunei.

Indonesia in November awarded a production sharing agreement contract to Unocal Corp. to explore and exploit oil and gas in the East Ambalat Block, also located in the same disputed waters.