Malaysia’s oil and gas exploration in the South China Sea has been a cornerstone of its economy for decades. However, overlapping territorial claims with China have created ongoing friction in this strategically important region.
Leaked Note Sparks Diplomatic Concerns
In February 2024, a confidential diplomatic note from China’s Ministry of Foreign Affairs was sent to Malaysia’s embassy in Beijing, calling for a halt to Malaysia’s oil and gas activities near Sarawak, particularly in the Luconia Shoals.
While Malaysia asserts that this area falls within its exclusive economic zone (EEZ), China’s controversial ‘ten-dash line’ claims the same waters.
When the note was leaked to the media in August 2024, it sparked significant attention. Malaysia’s Ministry of Foreign Affairs launched an investigation into the leak.
Prime Minister Anwar Ibrahim responded by reaffirming Malaysia’s sovereignty, emphasizing that exploration activities in the country’s EEZ would continue. He also noted the importance of balancing sovereignty with maintaining amicable relations with China, Malaysia’s largest trading partner.
Decades of Oil and Gas Exploration
Malaysia’s involvement in oil and gas exploration in the South China Sea dates back to the 1950s, beginning with seismic surveys off the coast of Sarawak. Offshore drilling commenced in 1957, accelerating significantly after 1966.
By 1982, over 295,000 kilometers of seismic data had been collected, and more than 500 exploratory wells had been drilled, leading to over 100 major discoveries. The first offshore oil field began production in 1968 near Sarawak.
The region’s vast hydrocarbon resources have been crucial to Malaysia’s economy, with state-owned Petronas leading the development of these reserves.
Under the United Nations Convention on the Law of the Sea (UNCLOS), Malaysia’s exclusive economic zone (EEZ) grants it rights to exploit resources within 200 nautical miles of its coastline.
However, China’s territorial claims, marked by its expansive ‘ten-dash line,’ overlap with Malaysia’s EEZ, causing frequent diplomatic and maritime tensions.
Recent Expansion Amid Maritime Disputes
In recent years, Malaysia has intensified its oil and gas exploration efforts, particularly in deepwater areas, to meet domestic energy demands and bolster exports. Petronas has been at the forefront of these activities, including high-profile projects like the Kasawari gas field, an RM4.5 billion initiative.
However, such ventures have attracted attention from Chinese maritime patrols, often resulting in tense encounters. In 2021, Malaysian vessels conducting surveys near the Kasawari gas field reported harassment by Chinese ships, highlighting the risks Malaysia faces while pursuing its energy objectives in contested waters.
Balancing Sovereignty and Diplomacy
Malaysia has taken a more cautious diplomatic stance toward China compared to some neighboring countries. Analysts attribute this approach to Malaysia’s strong economic ties with China, its largest trading partner since 2009. In 2023, bilateral trade between the two nations amounted to $190.24 billion, underscoring China’s importance to Malaysia’s economy.
Despite its economic reliance, Malaysia has consistently defended its territorial rights. In 2019, Malaysia submitted a note verbale to the United Nations, challenging China’s maritime claims and reaffirming its commitment to UNCLOS principles.
Geopolitical Implications
The South China Sea, a critical trade route through which $7.4 trillion in goods passes annually, remains a geopolitical flashpoint. Malaysia’s firm stance underscores the broader regional challenge of navigating China’s assertive territorial claims.
Other claimants, such as Vietnam, the Philippines, and Brunei, face similar issues, highlighting the shared struggle to assert sovereignty.
Efforts by ASEAN to finalize a Code of Conduct for the South China Sea have stalled, reflecting the complexities of uniting member states with varying dependencies on China.
The situation underscores the need for a cohesive regional strategy to manage tensions and ensure stability in this vital area.
Looking Ahead
Malaysia’s decision to continue oil and gas exploration, despite opposition from China, signals its commitment to protecting its economic interests and sovereignty. However, it must carefully manage its relationship with Beijing to avoid jeopardizing its significant trade ties.
As disputes over the South China Sea persist, Malaysia’s actions, along with those of its regional counterparts, will play a pivotal role in shaping the future of this contested region. The balance between resource control, economic development, and geopolitical stability will remain a delicate but critical challenge for all parties involved.
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@theborneopost Malaysia does not recognise China’s claims in the South China Sea, as outlined in the “China Standard Map Edition 2023,” which also encompasses Malaysia’s maritime areas, stated the Ministry of Foreign Affairs. #theborneopost #borneo #sarawak #malaysia #china #southchinasea #southchinaseadispute
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