PM NAJIB CONFIDENT BORDER TALKS WILL MALAYSIA, BRUNEI

SIBU (Malaysia), May 3 (Bernama) -- Prime Minister Najib Tun Razak is
confident that talks to resolve sea and land boundary issues between Malaysia
and Brunei will result in a win-win solution for both countries.

He said that both countries were negotiating the matter as a package,
covering all aspects such as the role which Petronas, Malaysian-owned oil and
gas company, could play with regard to
exploration and development, and investment opportunities for Brunei
corporations in Malaysia.

"The Sultan of Brunei Sultan Hassanal Bolkiah has always said he wanted to
see a solution which is based on a mutually-beneficial formula," he said.

The prime minister was speaking to reporters after attending a luncheon and
presenting Malaysian Service Medal medals to 32 armed forces veterans from
Sarawak at Rascom Camp at the Ninth Infantry Brigade in Jalan Ulu Oya, near here
Sunday.

Sibu is an inland town, and the capital of Sibu District in Sibu Division,
Sarawak, east Malaysia.

He said that both countries reached an in-principal agreement on the issue
last year and that both countries were now looking at the matter in terms of
demarcation surveys which would be done in a manner that would benefit both
countries.

Najib was asked to comment on the statement by former prime minister Dr
Mahathir Mohamad, questioning in a blog posting on Thursday why two oil-rich
blocks were no longer belonged to Malaysia and said that the loss could cost the
country at least US$100 billion (RM320 billion).

Dr Mahathir claimed that his successor Abdullah Ahmad Badawi had
surrendered the two blocks to Brunei in exchange for Limbang.

Abdullah, who signed an Exchange of Letters between both countries last
year, clarified that the land and sea agreement with Brunei was approved by the
Malaysian cabinet and that Malaysia would be allowed to participate in joint
development of oil and gas on commercial basis in the two areas for a period of
40 years.

The national oil corporation, Petronas, said Saturday that it had been
invited by Brunei to develop two offshore exploration areas formerly designated
as Blocks L and M on a commercial arrangement basis.

Petronas said it had set up a team and had begun negotiations with Brunei to
work out the terms for the development of the two blocks now known as Blocks CA1
and CA2.

-- BERNAMA