Malaysia, Brunei fail to end oil row

Malaysia, Brunei fail to end oil row

MALAYSIA: Talks between Brunei and Malaysia failed on Friday to settle rival territorial claims on oil-rich waters off Borneo island, with Kuala Lumpur saying its proposal made in May was its best offer.

Malaysian Foreign Minister Syed Hamid Albar said after a meeting between Brunei's Sultan Hassanal Bolkiah and Malaysian Prime Minister Mahathir Mohamad that it was now up to Brunei to consider the proposal.

Exploration activities in the disputed area have been halted after the Malaysian navy earlier this year chased off a drilling team belonging to a consortium led by France's Total.

Malaysia has proposed a production-sharing agreement, according to a source in Brunei with knowledge of the sultanate's policy making. But Brunei's U.K.-based advisers have warned such a pact may mean conceding Malaysia has territorial rights, the source said. -- Reuters