Malaysia’s Prime Minister, Anwar Ibrahim, has reaffirmed that the state energy firm Petronas will continue its oil and gas exploration activities within Malaysia’s exclusive economic zone (EEZ) in the South China Sea, despite opposition from China. Anwar made this statement in parliament on Tuesday, highlighting Petronas’ ongoing operations in the Kasawari gas field off the coast of Sarawak on Borneo.
Exploration to Continue, Diplomatic Discussions Remain Open
Prime Minister Anwar emphasised Malaysia’s intention to proceed with exploration activities but noted that the country remains open to discussions with any nation. He acknowledged that Malaysia has territorial disputes with several neighbours, including Thailand, the Philippines, and Indonesia, but insisted these disputes have not harmed diplomatic or trade relations.
“We will continue, but we will not close the door on discussions with any country,” Anwar said, adding that undue focus had been placed on differences with China. He reiterated that these territorial issues do not affect Malaysia’s friendly ties with its neighbours.
China’s Claims and Malaysia’s Stance
Tensions over oil and gas exploration escalated last month when a diplomatic note from Beijing claimed Malaysia’s activities breached Chinese territory. China asserts sovereignty over nearly the entire South China Sea, a stance rejected by a 2016 ruling from the Permanent Court of Arbitration in The Hague. Despite this, Beijing continues to deploy coast guard vessels into the EEZs of Southeast Asian nations, including Malaysia, complicating exploration efforts.
In response to China’s objections, Anwar clarified that Malaysia’s activities are within its territorial rights and are not intended as a provocation or hostile act. Petronas has faced encounters with Chinese vessels during its operations, particularly in areas like the Kasawari, Timi, and Jerun fields. A recent report by the Asia Maritime Transparency Initiative noted frequent visits by Chinese coast guards to these exploratory wells, sometimes approaching within 1,000 metres of gas platforms.
The Importance of the Kasawari Field
Petronas’ Kasawari field, located off Sarawak, is a critical energy asset for Malaysia. It holds an estimated 10 trillion cubic feet of gas reserves and began production in August 2023. Despite challenges posed by Chinese vessels, the project continues to play a key role in Malaysia’s energy strategy.
(With Inputs from Reuters)
