Reuters: Indonesia protests at Malaysian deal with Shell: “Indonesia said on Sunday it had lodged a protest against a Malaysian oil production sharing contract with Anglo-Dutch giant Royal Dutch/Shell in an offshore area Jakarta claims as its territory”: "Indonesia believes that Malaysia has no right to give concessions in that area. Awarding a concession by Petronas to Shell is a violation of Indonesian territory," (ShellNews.net) 27 Feb 05

Sun Feb 27, 2005

JAKARTA (Reuters) - Indonesia said on Sunday it had lodged a protest against a Malaysian oil production sharing contract with Anglo-Dutch giant Royal Dutch/Shell in an offshore area Jakarta claims as its territory.

The Energy Ministry's director general for oil and gas, Iin Arifin Takhyan, told Reuters the disputed area was in Ambalat in offshore East Kalimantan.

"The Foreign Ministry has lodged a protest to Malaysia because (Malaysian state firm) Petronas has awarded the exploration concession to Shell in our territory," he said.

Foreign Ministry spokesman Marty Natalegawa said Indonesia would do everything in its power to safeguard its rights to oil and gas blocks in the area.

"Indonesia believes that Malaysia has no right to give concessions in that area. Awarding a concession by Petronas to Shell is a violation of Indonesian territory," he said.

"Indonesia will do its utmost to safeguard its interests."

Neither official gave further details.

Earlier this month Petronas awarded two new blocks, ND6 and ND7 off Borneo island, to local unit Petronas Carigali and Shell Malaysia, part of Royal Dutch/Shell.

Malaysia is Southeast Asia's second-biggest crude producer after Indonesia.

http://www.reuters.com/newsArticle.jhtml?storyID=7748478&type=businessNews