Pak Lah gets flak over RM320b oil giveaway

By Leslie Lau, Executive Editor (TMI)

KUALA LUMPUR, April 30 — Tun Abdullah Ahmad Badawi is alleged to have allowed Malaysia to sign away up to RM320 billion in potential oil earnings, in return for Brunei dropping its claim over Limbang in Sarawak.

Both former prime minister Tun Dr Mahathir Mohamad and the DAP’s Lim Kit Siang demanded an explanation today from the country’s previous PM, after news reports emerged last week suggesting Malaysia had signed away its oil rights.

Murphy Oil, which had entered a production-sharing contract with national oil company, Petronas, for Block L and Block M offshore of Limbang, announced last week that it was ceasing operations because “it was no longer part of Malaysia.”

“It would seem that the loss of a huge oil producing area that had apparently belonged to Malaysia is okay,” said Dr Mahathir today in a posting on his blog.

Separately, Lim said Abdullah should explain whether he had indeed signed off US$100 billion (RM320 billion) worth of oil rights to resolve Brunei’s claims to Limbang a month before he stepped down as prime minister in March last year and if so, why.

In the waning weeks of his term as PM, Abdullah had visited Brunei for talks with Bandar Seri Begawan officials.

Following the trip he announced that Brunei would no longer continue with its claim on Limbang, the stretch of  land in Sarawak which partly splits Brunei in two.

Abdullah, however, did not divulge details of the deal with Brunei.

Brunei also reportedly said later it had not dropped its claims on Limbang.

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