Brunei and Malaysia yesterday agreed to jointly develop an oil exploration block, with officials of state-owned companies Brunei National Petroleum Company Sdn (PetroleumBRUNEI) and Petronas signing the agreement.
The Brunei deepwater block Production Sharing Agreement (PSA) for Block CA2 of the Commercial Arrangement Area (CAA) was inked in a signing ceremony between PetroleumBRUNEI and its contractors at the Istana Nurul Iman. His Majesty, the Sultan and Yang Di-Pertuan of Brunei Darussalam and Malaysian Prime Minister Dato' Laila Utama Dato' Seri Mohd Najib Tun Hj Abd Razak, who was here for a brief working visit, were present to witness the signing between PetroleumBRUNEI Chief Executive Officer Azren Taib, and Petronas President and Chief Executive Officer cum Chairman of Petronas Carigali Dato' Shamsul Azhar Abbas.
"This trip is significant because of the implementation of the understanding and agreement based on the Exchange of Letters back in March 2009, and based on our statement issued after our annual consultation last September. So this is a significant step forward because we have started CA1 and now CA2, and we look forward to more progress in the near future," Dato' Seri Najib said in response to a question asked by The Brunei Times on the significance of his day trip to Brunei was and how it would heighten bilateral relations.
Prior to his departure at the Brunei International Airport, he told reporters, "Today, the understanding has been achieved, where Block CA2 has been formally signed between Petronas and Brunei National Petroleum Company Sdn Bhd. With this, we see a bigger opportunity for Petronas to take part in the development of both areas."
He noted that His Majesty has also expressed satisfaction with the understanding that has been achieved, and there was a possibility that Petronas "might get better opportunities" in the future.
Regarding the four-eyed meeting held between His Majesty and prime minister Dato' Sri Najib at the Istana Nurul Iman, he said: "His Majesty has spoken of his wish to expand Brunei's investments in Malaysia, whether in Sabah, Sarawak or the Iskandar region, and to continue the development of a hotel in the vicinity of KLCC (Kuala Lumpur City Centre) in Kuala Lumpur."
"We acknowledged dialogue and discussions which are still being conducted between relevant ministers in various aspects, including improving connectivity between Sabah, Sarawak and its people," prime minister Dato' Sri Najib added.
When asked if the production sharing agreement for CA2 was based on a "50-50 per cent basis of oil exploration", the prime minister said: "There are terms and conditions, where both sides have agreed to it for 40 years".
A joint statement between the leaders of both countries said both leaders viewed the signing occasion as a "significant milestone" in enhancing cooperation between the petroleum authorities of the two countries in the area.
"They underscored the importance of the signing of the PSA for Blocks CA1 and CA2 of the CAA in carrying out the commercial arrangement aspect of the Exchange of Letters (EOL), and expressed satisfaction with the progress to date.
Apart from reiterating their view that there remains good potential for future cooperation in both countries, especially beyond Blocks CA1 and CA2, Sabah and Sarawak, they also noted the possibility of a joint venture in a "third country" in the exploration and exploitation of oil and gas, and the development of downstream industries.
In attendance at the signing ceremony were Crown Prince and Senior Minister at the Prime Minister's Office His Royal Highness Prince Haji Al-Muhtadee Billah and Minister of Foreign Affairs and Trade His Royal Highness Prince Mohamed Bolkiah.
The Deed of Ammendment of the Brunei deep water block PSA between PetroleumBRUNEI and its contractors for Block CA1 of the CAA was inked on September 21 in Putrajaya, Kuala Lumpur.
