Malaysia, Brunei Agree to Jointly Develop Oilfields Straddling Common Maritime Border
Malaysia and Brunei have agreed to jointly develop the Gumusut-Kakap and Geronggong-Jagus East oilfields which straddle the countries' maritime boundary.
This was formalised by the Unitisation Agreement (UA) between Brunei National Unitisation Secretariat (NUS) and Petroliam Nasional Bhd (Petronas) during Prime Minister Tan Sri Muhyiddin Yassin's visit to the kingdom today.
The landmark deal is among a few initiatives to which the two countries committed during the visit.
A joint statement on the 23rd Annual Leaders' Consultation said that Sultan of Brunei Sultan Hassanal Bolkiah and the prime minister welcomed the formalisation of the UA.
"It signifies the strong cooperation between the two sides. The UA will provide a positive momentum to the oil and gas cooperation between both countries," it said.
The statement also said both leaders were pleased with the long standing collaboration between Petroleum Authority of Brunei Darussalam and Petronas.
"They expressed hope that both sides would step up efforts to further progress in their commercial arrangement, including monetisation discussions for viable development of the gas resources in the commercial arrangement areas."
Petronas president and group chief executive officer Tengku Muhammad Taufik Tengku Kamadjaja Aziz said the UA firmly attested to the continuing collaboration between Malaysia and Brunei.
It established the platform for the joint development of the fields by Petronas and NUS to further enhance the value derived from these assets for both countries, he said in a separate statement.
"Today's signing is indeed a testament to the synergy between Petronas and the Ministry of Energy, Brunei Darussalam, and embodies yet another step towards strengthening our long-standing relationship for greater shared success," he added.
Sultan Hassanal and Muhyiddin, meanwhile, acknowledged the significant benefits of enhancing connectivity and collaboration in transport, particularly in facilitating the movement of goods and people.
The leaders, the statement said, looked forward to the signing of the memorandum of understanding (MoU) on Transport Cooperation which paves the way for enhanced partnership in areas such as safety, security, intelligent transport systems and logistics.
"They also look forward to the early conclusion of a modernised Air Services Agreement between Brunei and Malaysia."
Sultan Hassanal and Muhyiddin also welcomed the signing of the MoU between both governments on Cooperation in Disaster Management.
The MoU will strengthen ties particularly through training, the conduct of joint exercises, operations and the exchange of expertise; and information related to disaster prevention as well as risk reduction.
The leaders also reaffirmed their commitment to undertaking mutual cooperation in the areas of information and communication technology, including multimedia and cybersecurity and welcomed the progress made towards finalising an MoU on Info-Communications Media.
Sultan Hassanal and Muhyiddin also looked forward to the renewal of the MoU on cooperation in youth and sports which was signed in 2011 with the objective of enhancing collaboration in youth and sports development, including youth empowerment and leadership in both countries.
They also reaffirmed the significance of the Exchange of Letters signed by the two countries on March 16, 2009.
"They reiterated the importance of the mechanism under the implementation of the Exchange of Letters led by the foreign ministers of both countries and expressed hope that both sides would exert all efforts in advancing their work in this area."
Sultan Hassanal and Muhyiddin also expressed satisfaction with the steady progress made in agriculture particularly on the importation of livestock and fresh produce from Sabah and Sarawak.
They emphasised the importance of strengthening cooperation in this area towards ensuring food supply chains and distribution functions efficiently and stressed on cooperation and promotion in other sectors such as agriculture, fisheries, education as well as connectivity, trade and tourism.
Source from: Dawn Chan(2021). Malaysia, Brunei Agree to Jointly Develop Oilfields Straddling Common Maritime Border. Retrieved from: New Straits Times, Nation(April 05, 2021). https://www.nst.com.my/news/nation/2021/04/679819/malaysia-brunei-agree-jointly-develop-oilfields-straddling-common