Indonesia-Malaysia resumes Ambalat block talks

The Indonesian and Malaysian governments agreed to continue negotiations over the Ambalat block. The agreement was reached by President Susilo Bambang Yudhoyono and Malaysia Prime Minister Najib Razak at the State Palace Thursday, Tempo Interactive reported.

Yudhoyono said both governments had instructed their respective negotiating teams to resume talks and seek a real and measured solution on the dispute over the ownership of the Ambalat block.

?This maritime border issue should be resolved with goodwill as befitting fellow ASEAN countries and close friends,? Yudhoyono said. The view was shared by visiting Malaysian Prime Minister Najib Razak, who hoped that the Ambalat Block dispute would not disrupt improved bilateral relations Indonesia and Malaysia.

According to Yudhoyono, the opportunities were open for both countries to explore natural resources in the area, especially oil and gas. ?I think this is a good time for both countries to continue border negotiations,? he said. ?As such, we can also focus on developing maritime and energy resources for the benefit of both countries.?

Italian oil giant Eni SPA holds the exploration and exploitation rights over Ambalat and the nearby Bukat block until 2029 and 2028 respectively.

Eni SpA has discovered deposit in Bukat deepwater block that may produce 30,000-40,000 barrels of oil per day, Director General of oil and Gas at the Ministry of Energy and Mineral Resources Evita Legowo said on April 17, 2009, adding that the government has asked Eni to make further tests to determine the size of the reserves there.

In September 2007, upstream oil and gas authority BPMIGAS estimates Eni had discovered recoverable oil reserves of 62 million barrels in the Aster field of the block. (*)