Jakarta-KL relations put to test over oil contract
Jakarta-KL relations put to test over oil contract
Veeramalla Anjaiah, The Jakarta Post, Jakarta
Despite the generally cordial relations between Indonesia and
Malaysia, a long list of problems like illegal migrant workers,
haze, illegal logging and sensitive border problems have long
been a strain on those good relations for many years.
Now, a dispute over lucrative oil and gas blocks can be added
to the list of thorny issues, which will put the two countries'
ties to a litmus test.
Indonesia lodged a protest on Friday against its neighbor
Malaysia after the latter awarded two oil concession rights in
the Celebes Sea -- just east of Borneo island -- to the Dutch
company Shell, Minister of Foreign Affairs' spokesman Marty
Natelegawa said in Jakarta.
The location of the concessions are in Indonesian territory.
"It's a violation of our sovereignty," Marty said at the end
of 15th ASEAN-EC Joint Cooperation Committee meeting in Jakarta
on Saturday.
ASEAN, or the Association of Southeast Asian Nations, and the
EC is the European Commission's short form. The EC is the
executive arm of the 25-member European Union (EU).
On Feb. 16, 2005, Malaysia's state oil and gas company
Petronas and Shell's local subsidiary Shell Malaysia signed two
production sharing contracts (PSCs) for deepwater blocks ND6 and
ND7.
Shell Malaysia has interests in 17 PSCs in various offshore
blocks in East and West Malaysia.
"Officially, we sent a protest note to Kuala Lumpur on Friday
and are waiting for their response," Marty said while adding that
Jakarta will not allow Shell to operate in our area.
"If they (Shell) want oil concessions, they must talk to us,"
Marty, who is also the current director-general of ASEAN-
Indonesia, said.
The Malaysian Ambassador to Indonesia Hamidon Ali could not be
reached for comment.
Marty said if Indonesia kept quiet, Malaysia would think that
we approve of their actions on the oil and gas contract.
"We will protect our territorial sovereignty," Marty asserted.
He added that it was not the first time that Malaysia had
committed violations of Indonesian territory.
He was referring to Malaysia's seismic test in 2003 at two oil
and gas blocks, which Malaysia refers to as Y and Z, east of the
coast of East Kalimantan province.
"We immediately launched a protest. Every time there is a
violation, we protest their actions," he explained.
Last year, according to Marty, The Malaysian maritime police
of Tawau, in Sabah, East Malaysia, conducted firing practice in
the waters of Ligitan and Sipadan, which are in Indonesian
territory.
"Not the islands of Ligitan and Sipadan. But the water near
those islands belong to Indonesia," Marty emphasized.
Indonesia lost Ligitan and Sipadan islands to Malaysia in a
legal battle at the Hague-based International Court of Justice in
December 2002.
Last month, Malaysia's Sri Malaka ship chased and fired shots
at three Indonesian ships: the KM Wahyu, KM Jaya Sakti and KM
Irwan in the waters off East Kalimantan province.
Marty said Indonesia recently increased maritime patrols near
the border with Malaysia in order to prevent such violations.
When asked what would happen if Malaysia did not respond to
Indonesia's protest, Marty said it would become a serious matter
between the two countries.
There is another dispute at the East Ambalat oil and gas block
off of Borneo as well, near East Kalimantan province.
Malaysia raised objections when Indonesia awarded the East
Ambalat block to the U.S. energy giant Unocal last year.