PETRONAS-BRUNEI JOINT VENTURE TO BENEFIT SARAWAK'S NORTHERN REGION

MIRI (Malaysia), May 20 (Bernama) -- The joint-venture between Petroliam
Nasional Bhd (Petronas) and Brunei to develop two offshore oil reserves near the
sultanate is expected to benefit Sarawak's northern region.

Sarawak' Deputy Chief Minister, Dr George Chan, said the
joint-venture would seek expertise on offshore oil exploration and operation
available in this part of the state.

"There would definitely be an impact because we are close to the area of
production and (we possess) the experience on working on the oil fields," he
told reporters here Thursday.

Earlier, Dr Chan, who is the state's Industrial Development Minister,
launched the Miri's 100th Year Anniversary of First Oil Discovery forum and
exhibition at the library building here.

He said Miri, the closest city to the area, could expect an increase in
economic activities with the joint-venture.

Petronas, in a statement on May 1, said it has been invited by Brunei to
develop two offshore exploration areas, formerly designated Blocks L and M, on a
commercial arrangement basis.

The national oil company said the arrangement was made following the
exchange of letters between Malaysia and Brunei on March 16 last year.

Petronas then set up a team and started talks with Brunei to work out the
terms for the development of the two areas, now known as Blocks CA1 and CA2.

-- BERNAMA



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