Petronas work in the South China Sea to continue

Malaysian Prime Minister Anwar Ibrahim reaffirmed that state energy company Petronas will continue oil and gas exploration activities in the country’s exclusive economic zone, located in the South China Sea, despite objections raised by China. Among these operations is the development of the Kasawari gas field, located off the state of Sarawak on the island of Borneo, as reported by the president before parliament.

Ibrahim was clear in pointing out that his government’s position is to maintain these projects, although he clarified that the doors to dialogue with other nations will not be closed. He stressed that, despite territorial differences with several neighboring countries, including Thailand, the Philippines and Indonesia, the conflict with China tends to receive disproportionate attention.

The prime minister emphasized that although disputes exist, they do not interfere with diplomatic, commercial relations or the friendly ties that Malaysia maintains with its neighbors. This conciliatory approach was also highlighted last month, when Ibrahim explained that Malaysia’s exploration activities are carried out within its territory and are not intended to be seen as provocations or hostile actions towards China. These statements followed the media leak of a diplomatic note issued by Beijing, which stated that Petronas’ activities in the South China Sea infringed on Chinese sovereignty.

China maintains a claim over almost the entire South China Sea, a position that has generated friction with several Southeast Asian countries, including Malaysia, Brunei, the Philippines and Vietnam. Tensions have been exacerbated by the constant presence of Chinese coast guard vessels in these countries’ exclusive economic zones, complicating their exploration efforts. In 2016, the Permanent Court of Arbitration in The Hague issued a ruling rejecting Beijing’s expansive claims, determining that they had no merit under international law. However, China has rejected this decision and maintains its position of control over the region.

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In this context, Petronas projects in the South China Sea have witnessed several encounters with Chinese vessels in recent years. According to a recent report by the Asia Maritime Transparency Initiative, a US think tank, this year has seen an increase in Chinese coast guard presence near Malaysian exploration wells off the coast of Sarawak. The report details that Chinese vessels have approached up to a thousand meters from the gas production platforms in Timi, Kasawari and Jerun.

The Kasawari gas field is a highly important resource for Malaysia, with reserves estimated at ten trillion cubic feet of gas, and production began in August this year. This infrastructure represents a key piece for the country’s energy industry, which seeks to maintain its independence in this sector, despite the tensions in the region. Chinese incursions, however, add a layer of complexity to the operation of these fields, which could lead to future incidents if not handled with caution.

Malaysia’s policy appears to seek a delicate balance between defending its sovereign interests and the need to maintain peace and regional cooperation. Ibrahim’s statements, in which he reiterated the willingness to continue exploratory activities while leaving open the possibility of dialogue, reflect this strategy. The Malaysian government has shown that it is not willing to give up its right to exploit its natural resources, but at the same time, it is striving to prevent these disputes from affecting its relationship with China and other countries involved.

In recent decades, the South China Sea has become one of the most contentious points in Asian geopolitics, not only because of the territorial dispute itself, but also because of the vast resource reserves found in its depths. The presence of important oil and gas deposits in the area has turned this sea into a scene of competition between the coastal nations and China, which insists on its historical claims. The case of Malaysia, with its insistence on continuing exploration of Kasawari and other fields, is another example of how these countries are trying to consolidate their presence in a highly contested region.