The acreage, as reported earlier by EnergyReview.net, overlaps Blocks ND6 and ND7, which Malaysia’s Petronas intends to develop.

In a statement Indonesian mines and energy ministry exploration director Novian Thaib declared, “We have awarded Unocal exploration in East Ambalat. As far as we are concerned East Ambalat is our territory [and] we awarded Unocal to explore there to find hydrocarbon.”

Speaking to Reuters, a Petronas insider would only comment, “The matter [will] have to be resolved between the Malaysian and Indonesian governments.”