Oil Block Controversy Surfaces

Malaysia's state-run oil company Petronas announced on May 1 2010 that it is in negotiations with the Sultanate of Brunei over the development of two offshore oil and gas blocks - Blocks L and M - in the South China Sea. Importantly, it has been reported that former Prime Minister Abdullah Badawi transferred the sovereignty of the two blocks to Brunei in March 2009 so that the latter would drop its territorial claims on Limbang. This has sparked growing domestic criticisms, alleging that the deal has led to a significant loss of oil and gas revenues for Malaysia.

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