Indonesia, Vietnam sign Natuna boundary agreement

Vietnam and Indonesia signed an agreement on Thursday that resolves a two-decades-old dispute over a sea boundary in an area rich in oil and gas.

President Megawati Sukarnoputri, on her second visit to the communist country, headed the signing ceremony.

The maritime accord marks out the continental shelf boundary and provides a basis for additional oil and gas exploration in the Natuna sea area.

Megawati, speaking in Hanoi's ornate French colonial era Presidential Palace, said the pact was concluded "after a long period of negotiation" of more than 20 years.

The Natuna area, in the South China Sea between the island of Borneo and the Malaysian peninsula, is rich in oil and gas, with a potential 2.8 billion barrels. Indonesia already has a major gas installation in the area that supplies Singapore.

Neither side provided any details on the pact. (*)