Indonesia, Vietnam tentatively agree oil, gas rich borderlines

Senior officials from Indonesia and Vietnam have tentatively agreed on a maritime boundary between them which would provide a basis for oil and gas exploration in the Natuna sea area, Indonesia Foreign Minister Hassan Wirajuda said on Tuesday.

Indonesia and Vietnam have been in lengthy talks to settle their sea boundary in an area believed rich in hydrocarbons.

"Senior officials of Indonesia and Vietnam have agreed temporarily on a sea line between the two countries. The recommendation of the line will be reported to the heads of state of both countries for agreement," Wirajuda told reporters.

"This recommendation of the line will give safety for our interests in the region," he added.

Indonesia Energy and Mineral Resources Minister Purnomo Yusgiantoro said the agreement was expected to be signed during a visit by President Megawati Sukarnoputri to Vietnam in June.

"The region, above the Natuna islands, has a potential 2.8 billion barrels of hydrocarbon and we are happy with this temporary agreement," he said.

Some foreign oil contractors, including U.S. ConocoPhillips , have been operating around in the Natuna sea to produce oil and natural gas. (*)