does this sounds like an ultimatum??
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Malaysia, Brunei fail to end offshore oil row
22 Aug 2003 11:26
KUALA LUMPUR, Aug 22 (Reuters) - Talks between Brunei and Malaysia failed on Friday to settle rival territorial claims on oil-rich waters off Borneo island, with Kuala Lumpur saying its proposal made in May was its best offer.
Malaysian Foreign Minister Syed Hamid Albar said after a meeting between Brunei's Sultan Hassanal Bolkiah and Malaysian Prime Minister Mahathir Mohamad that it was now up to Brunei to consider the proposal.
Exploration activities in the disputed area have been halted after the Malaysian navy earlier this year chased off a drilling team belonging to a consortium led by France's Total .
"The prime minister has made it very very clear that we have submitted our proposal and that proposal is the maximum we can live with," Syed Hamid told reporters.
"It's up to Brunei to look at what we have said, so we will wait for their response," he said. "At this meeting, they did not make any final decision that will be lasting and durable."
The stakes in the dispute shot up last year after Murphy Oil made a sizeable discovery in a Malaysian block near the disputed area, and put preliminary estimates on the Kikeh field's recoverable reserves at 400 million to 700 million barrels.
Syed Hamid declined to say whether the halt on exploration activities in the area would continue.
Malaysia has proposed a production-sharing agreement, according to a source in Brunei with knowledge of the sultanate's policymaking.
But Brunei's U.K.-based advisers have warned such a pact may mean conceding Malaysia has territorial rights, the source said.
Brunei, a tiny nation of 330,000 people surrounded on all sides by Malaysia, lacks the muscle to back up its claim, however, and may lose more by digging in against its neighbour.
Syed Hamid said there were areas both sides could agree on.
"I think we have moved nearer to a final solution," he said, adding it was possible to resolve the issue before Mahathir steps down in October. Brunei's exclusive economic zone (EEZ) stretches 200 km (124 miles) offshore and the sultanate awarded exploration blocks.
But Malaysia bases its overlapping claim on possession of some tiny islands and reefs in the South China Sea, and argues that Brunei only has jurisdiction over its continental shelf, in water up to 200 m (656 ft) deep. About three-quarters of the EEZ is in deeper water
POOR BRUNEI... sure kena bully left right centre...... wat can singapore do for them? -
deja vu...
Brunei has got to stand its ground. if singapore a "titik merah yang kechil" (small red dot) can do it...much more Brunei! -
Singapore can't do anything until Brunei asks... it's a matter of sovereignty and they sure as hell won't ask...
like IAF said, if we can do it, Brunei can too.. -
huh? singapore was never in the picture rite? its a msia-brunei thing.Originally posted by the Bear:Singapore can't do anything until Brunei asks... it's a matter of sovereignty and they sure as hell won't ask...
like IAF said, if we can do it, Brunei can too.. -
ya we cannot do anything mah.....
thought i do wonder why Rear Admiral Teo is there now
hehe nah i'm just thinking to much -
tripwire asked that question
Originally posted by wuming78:huh? singapore was never in the picture rite? its a msia-brunei thing. -
- give sultan bolkiah moral support like "relax man, you can do it!"Originally posted by tripwire:POOR BRUNEI... sure kena bully left right centre...... wat can singapore do for them?
Anyway for Brunei, the only way to go is via arbitration. Perhaps this time the people at Hague will be fed up with Malaysia's one too many contesting territorial claims with her neighbours (mon dieu! not you again?!)
Is Malaysia out for landgrab or what? -
think the problem is slightly a bit more complex...Originally posted by wuming78:huh? singapore was never in the picture rite? its a msia-brunei thing.
1... singapore and brunei currencies are joint linked...
2... brunei's wealth and wellbeings affects the joint value of both countries currencies...
3... in a way... the stability and acceptability of singapore currencies globally has somewhat been influenced by the fact of that link... to brunei's oil, forex and gold reserves..
4... if brunei looses credibility, lost its economic resources like oil OR are forced to delink their currencies with singapore dollar... i think the impact would be bad for all of us here...
5... in fact... if i am mahatir's financial lackey... i would try to crack brunei... forced them to delink their currencies..and start a massive speculative attack against singapore dollar in the open market with every dime in malaysia reserves...
6... the effect would be great... if the currency speculation succeed or managed to gather sufficient global fund managers support... it goes without saying... our banks and our status as a financial center could be wiped out overnight...
7... and think what would happen to a singapore which is economically collapsed??
as such... brunei's wellbeing must be regarded as singapore's wellbeing... we cant leave them to the claws of the F U tiger up north... -
The Brunei's currency and Singapore's are not linked(or pegged)more of a currency agreement to allow exchanges of currency on par to facillitate trade and commerce. Each country's monetary bodies are still fully independent and can pursue wholly independent monetary and forex policies.Originally posted by tripwire:think the problem is slightly a bit more complex...
1... singapore and brunei currencies are joint linked...
2... brunei's wealth and wellbeings affects the joint value of both countries currencies...
3... in a way... the stability and acceptability of singapore currencies globally has somewhat been influenced by the fact of that link... to brunei's oil, forex and gold reserves..
4... if brunei looses credibility, lost its economic resources like oil OR are forced to delink their currencies with singapore dollar... i think the impact would be bad for all of us here...
5... in fact... if i am mahatir's financial lackey... i would try to crack brunei... forced them to delink their currencies..and start a massive speculative attack against singapore dollar in the open market with every dime in malaysia reserves...
6... the effect would be great... if the currency speculation succeed or managed to gather sufficient global fund managers support... it goes without saying... our banks and our status as a financial center could be wiped out overnight...
7... and think what would happen to a singapore which is economically collapsed??
as such... brunei's wellbeing must be regarded as singapore's wellbeing... we cant leave them to the claws of the F U tiger up north...
Singapore's currency is on a managed exchange rate where the MAS tries to maintain the SGD against a basket of foreign currencies within an undisclosed upper and lower limit. the limits and the composition of the basket of currency are state secrets for national security and economic stability reasons and for the very reason of guarding against speculative attacks. Further more more speculative attacks would only against currencies that are grossly over/undervalued.
Also for a sovereign democratic state such as malaysia to use it's state funds to fiddle in speculation would not only be political suicide for the incumbant government but also provide instablity within its own capital mkts and this point is especially important to a country where direct foreign invesment is so important.
My understanding of economics is only a spatula, others with more knowledge could give a better arguement but i dare say the scenario you painted is rather far-fetched
We must respect Brunei's sovereignty and its right to do as it sees fit. Perhaps the best thing singapore could do is to raise this matter subtly through diplomatic channels that singapore is willing to help or show support on this matter and perhaps the foreign ministers could share dossiers on malaysia's strategy in territorial disputes. -
singapore currency is linked to brunei currencies...
and ...
malaysia had used its forex reserves to speculate in currencies... they won some in the beginning... but then they lost big... big big...
but then.... who can say if anything is impossible? better be safe then sorry and keep a close watch on them.... -
For a fuller appreciation of the relationship between the Singapore and Brunei Dollar, visit the following site:
Brunei Currency Board
http://www.finance.gov.bn/bcb/bcb_index.htm
The Monetary Authority of Singapore (MAS) maintain the stability of the Singapore Dollar by monitoring the value of the Singapore Dollar vis-a-vis the currency movements of our major trading partners and competitors - which forms the core in a basket of currencies of different countries.
The movement of currency values in the Singapore Dollar with the other Currencies are determined by fluctuation wthin a tolerable fixed band of value of currencies; and this is closely monitored by by the Monetary Authority of Singapore.
For further reading, refer to Page 2 of a Report of the Singapore Exchange Rate Policy - at the following web site:
http://www.mas.gov.sg/resource/download/exchangePolicy.pdf -
Double Posted
Is there something wrong with the sgForum server ? -
Singapore expresses regret at KL's move over reclamation works in Tuas and Tekong
By Asha Popatlal
Singapore has expressed regret at Malaysia's move to halt the Republic's reclamation works in Tuas and Tekong.
On Friday, Kuala Lumpur applied to the International Tribunal on the Law of the Sea to get Singapore to stop the reclamation works.
Singapore's Foreign Minister Professor S Jayakumar told reporters on Saturday at the opening of the APEC Secretariat that Singapore had hoped to settle the matter amicably through talks.
Malaysia first objected to the reclamation works being carried out - within Singapore's waters - in Tekong and Tuas in January 2002.
Kuala Lumpur claimed that the works are causing damage to the marine environment and prejudice the rights of Malaysia.
Singapore repeatedly asked for technical reports to support these claims.
But it was more than a year later on 4th July 2003 that Malaysia produced reports to support these claims.
It gave Singapore two weeks to respond - or else it would refer the matter to the International Tribunal for the Law of the Sea - to get Singapore to stop reclamation works.
Singapore responded on 17 July with relevant reports and suggested the two parties meet.
Both sides met on 13 and 14 August for talks which a Singapore spokesperson said was a good start.
Singapore proposed a second round of talks but before this could happen, Malaysia brought the International Tribunal into the picture.
Professor Jayakumar said: "As recently as late August, further documents and reports were exchanged by both sides. In other words, both sides were in the process of talks and discussion. The talks had just begun and both sides were exchanging and examining each other's documents. In the midst of all this, they have suddenly decided to go to the International Tribunal on the Law of the Sea to apply for provisional measures."
Malaysia has made it a pre-condition that all work stop before there are any further talks.
The next step would be for Singapore to submit its case to the Tribunal in Hamburg.
The Foreign Minister says Singapore's Ambassador At Large - Professor Tommy Koh - will lead the team. -
Is that country on a hardball offensive with it's smaller neighbours or what?Originally posted by IAF:It gave Singapore two weeks to respond - or else it would refer the matter to the International Tribunal for the Law of the Sea - to get Singapore to stop reclamation works.
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Although i must admit that i am a bit more to the militaristic and ultra-nationalistic type, i was seriously wondering out loud: How can we take this lying down??? They are obviously bullying us. Maybe we should do something to show our Northern neighbours that we are not to be treated with lightly. The amount of money and resources pumped into the SAF isn't just for deterrence/show only! Anyone out there agree with me?
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I think that we should help Brunei in the event that it is being attacked because if Brunei is taken,then Singapore will be the next target right? Further more we are bounded by defence treaties. I seriously very du lan with how Malysia treats its neighbours!
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Unlikely scenario of that country doing something stupid, for now. They know that if they ever mess militarily with singapore, it will be doomsday for all the things they hold dear.Originally posted by tankee1981:I think that we should help Brunei in the event that it is being attacked because if Brunei is taken,then Singapore will be the next target right? Further more we are bounded by defence treaties. I seriously very du lan with how Malysia treats its neighbours!
At least, right now we're trading court summons, not bullets and smart bombs.
It's a pity to have to live with a neighboring country whose leader has such a big bitter chip on his shoulder. -
In any case, Tommy Koh's a good pick. He has lots of diplomatic experience, especially with the UN. This ought to be interesting to watch....Originally posted by IAF:Singapore expresses regret at KL's move over reclamation works in Tuas and Tekong
The Foreign Minister says Singapore's Ambassador At Large - Professor Tommy Koh - will lead the team.
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Here is an article from Alexander's Gas and Oil Magazine about the Brunei conflict.
Brunei and Malaysia continue to discuss oil sharing formula
02-06-03 Malaysia has offered an oil sharing formula to Brunei to resolve the drilling dispute in the Sultanate's offshore waters, reliable sources said. It said Brunei was considering the matter. Both parties are inclined to come to an amicable settlement, sources added.
Leaders of both countries met to discuss the issue and some progress has been reportedly made. Meanwhile, the French operator Total has been forced to abort its planned exploration drilling off Brunei Darussalam at the 11th hour. The drilling was aborted following intervention from the Malaysian government, which disputes the sovereignty of the waters.
Total had been preparing to spud a wildcat well on its deep-water Block J production sharing contract and actually had its chosen rig on location when the Malaysian Navy turned up to put a stop to its operations. There followed a few days' stand-off when the Bruneian Navy came to lend its support to the French. However, the Malaysian government apparently got the upper hand, and Totalelected to stop its planned drilling.
Total earlier had its site survey vessels driven away by the Malaysian Navy. A company insider earlier told that it would not have signed the PSC for Block J had it not been assured by the sultanate that sovereignty was not in doubt. Partners in the Block J PSC are operator Total with 60 %, BHP Billiton 25 %, and Amerada Hess 15 %.
The Malaysian authorities maintain that Block J and adjacent Block K, for which a Shell-led consortium is negotiating a PSC with Brunei, lie in its territorial waters. A couple of months before the French company signed for Block J in March, Malaysia awarded two blocks -- designated L and M -- to Murphy. These blocks off Sabah virtually overlap the Block J and K PSCs which, according to Brunei, are located in its exclusive economic zone.
Source: Brudirect.com
You see how the same news from Brunei sources differ from ST account of the news
Malaysia, Brunei fail to end offshore oil row
From the ST
22 Aug 2003 11:26
KUALA LUMPUR, Aug 22 (Reuters) - Talks between Brunei and Malaysia failed on Friday to settle rival territorial claims on oil-rich waters off Borneo island, with Kuala Lumpur saying its proposal made in May was its best offer.
Malaysian Foreign Minister Syed Hamid Albar said after a meeting between Brunei's Sultan Hassanal Bolkiah and Malaysian Prime Minister Mahathir Mohamad that it was now up to Brunei to consider the proposal.
Exploration activities in the disputed area have been halted after the Malaysian navy earlier this year chased off a drilling team belonging to a consortium led by France's Total.
blah blah blah
Noticed how the ST forgot to mention anything about the Malaysian and Brunei navy having a standoff at sea for A FEW DAYS!
This is why we should not trust the ST for any Malaysia reporting ... they are bound to leave out the facts as it suits them. Find an independant source if possible. -
Anyone knows if the Malaysian papers reported likewise as ST did?
While no apologist for ST, aside from not wanting to help escalate the tense situation thru' publicity, i also think it doesn't want to contribute to the strengthening of Malaysian's hand against the Bruneians. If the whole world knows about it, then the former would harden it's position. Just my 2 cents -
I can't trust both sides media to be reporting factually on this matter. The Malaysians will probably claim that their navy got chased off by the Bruneins.
What I don't understand is what the ST is trying to do? Start a fight between the Malaysians and the Bruneians? They are expert at stirring up shit. But its lots of fun to catch them at their game and expose them (when possible)