10-03-04 Malaysia and Brunei are considering a joint development authority to share oil and gas revenues from a disputed area off North Borneo, where there are two large and prospective oil blocks.
The Malaysian government was reviewing the production sharing contract it signed last year with US firm Murphy Oil for the disputed blocks L and M.

Rights to the blocks, covering almost exactly the same area, were awarded earlier by Brunei as Blocks J and K.
A consortium led by France's Total signed a contract three years ago to develop Block J, while a second group led by Shell was awarded Block K but has yet to sign a contract.

The territorial dispute between the neighbours appeared to be on hold in the run up to the Malaysian general election.
"Right now, development there is frozen while the two governments attempt to solve the problem -- it's spookily quiet right now," said an executive with one of the consortium members.