According to the paper, Petronas had called for “major international oil and companies” to bid for the two blocks which are located 150 km off the coast of Tawau. The problem arose when Indonesia’s state oil firm PT Pertamina announced plans to award exploration contracts in an area which falls between ND6 and ND7.

Citing an anonymous oil and gas industry source, the NST said, “The intrusion of Indonesia [is] worrying since it could disrupt Petronas’ plans. The matter will have to be resolved between the governments of the two countries.”

According to the report, “Indonesia has [already] began negotiations with several companies this month for a direct tender for exploration works in what is known as the East Ambalat block and awards are expected to be made soon.”

“Petronas plans to award production sharing contracts in the deep waters of the Sulawesi Sea before the end of the year [and] seismic studies have indicated potentially significant gas reserves, arousing the interest of oil companies,” added the report.