Malaysia Expands Oil and Gas Drilling in Disputed South China Sea

Malaysia Expands Oil and Gas Drilling in Disputed South China Sea | OilPrice.com

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Despite Chinese pressure, Malaysia has stepped up oil and gas exploration activities in the disputed South China Sea, even as the China Coast Guard has constantly pressured Malaysian oil and gas operations this year, a new report by Washington-based Asia Maritime Transparency Initiative showed.

The long-running dispute in the South China Sea involves territorial claims by China as well as Vietnam, the Philippines, Taiwan, Brunei, and Malaysia. China has territorial claims to about 90% of the South China Sea, which has put it at odds with its neighbors.

Territorial disputes in the South China Sea erupted after Beijing laid a sweeping claim to sovereignty over the sea—home to an estimated 11 billion barrels of untapped oil. Disputes over the South China Sea date back to the 1970s when countries began to claim various zones and islands in the sea, such as the Spratly Islands, which possess rich natural resources and fishing areas.

Automatic Identification System data shows that the China Coast Guard (CCG) has operated in Malaysian-claimed waters “like clockwork” so far this year, the report found. Asia Maritime Transparency Initiative (AMTI) found that between January 1 and September 30 nine different CCG vessels that spent time patrolling in Malaysia’s exclusive economic zone (EEZ) and continental shelf.

China’s ships on patrol in Malaysia’s EEZ spent most of their time near Luconia Shoals, a group of mostly submerged reefs 80 nautical miles northwest of Sarawak, AMTI said.

“Despite the CCG’s efforts, Malaysia has not only continued its existing oil and gas production but also expanded exploratory activity,” the report reads.

China’s continuous presence in Malaysia’s zone is a fraction of the number of ships it has deployed farther north in the Spratly Islands to monitor and contest Philippine activities in disputed waters, according to AMTI.

“However, with Malaysia’s expanding drilling and a potential reduction in China-Philippine tensions, Beijing could ratchet up the pressure on Malaysian hydrocarbon production,” the think tank said.

By Tsvetana Paraskova for Oilprice.com

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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.

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