Malaysia, Brunei ink 'significant' joint oil exploration deal

Kuala Lumpur, Dec 13 (ANI): Malaysia and Brunei Darussalam took their political and diplomatic ties to a new level by signing an agreement between the national oil company of the two countries to jointly develop offshore block CA2 off Borneo.

According to the New Strait Times, Malaysian Prime Minister Najib Tun Razak and Brunei's Sultan Hassanal Bolki ah were present during signing of the Production Sharing Agreement (PSA) between Petronas and Petroleum Brunei.

The two national oil companies had in September this year signed the PSA for offshore Block CA1 in Putrajaya when Najib and Sultan Hassanal met for the 14th Annual Leaders' Consultation.

The offshore exploration areas were previously identified as Block L and Block M before it was renamed CA1 and CA2.

The PSA would allow Petronas' involvement in the exploration and exploitation of oil and gas at the two offshore blocks for a period of 40 years, the paper said.

On being asked whether it was going to be a 50-50 sharing partnership, Najib said that no decision has been made on the matter as of now.

In a joint statement, both leaders viewed the historical signing of the PSA as a significant milestone in enhancing cooperation between the petroleum authorities of the two countries. (ANI)