Indonesia's Oil Concession Claim Can Be Resolved, Says Najib

Deputy Prime Minister Datuk Seri Najib Tun Razak, Tuesday expressed confidence that the problem related to Indonesia's claim over Malaysia's oil concession area in the Sulawesi Sea can be resolved at the negotiating table.

He said Kuala Lumpur and Jakarta were enjoying a close relationship.

"Our relationship is good. We can resolve whatever problem through negotiations," he told reporters here.

Najib, who is also Defence Minister, was asked about Indonesia's deployment of three warships in the oil concession area.

Last week, the republic lodged a protest against a Malaysian oil production sharing contract with Anglo-Dutch giant Royal Dutch Shell in an offshore area Jakarta claims as its territory.

Prime Minister Datuk Seri Abdullah Ahmad Badawi had said Monday that the area granted by Petronas to Shell to explore oil and gas in two deep-water blocks in the Sulawesi Sea was within Malaysian territory.

On the first of six new-generation patrol vessels (NGPV) built by PSC-Naval Dockyard (PSC-ND) Sdn Bhd under a RM5.35 billion contract which was being sent back to the docks due to various technical problems, Najib said the company was rectifying them.

He said the problems had been anticipated because a sophisticated electronic system was involved.

Royal Malaysian Navy (RMN) Chief Datuk Seri Mohd Anwar Mohd Nor had said on Saturday that the navy detected various technical problems when it undertook sea trials of the PV1 before its commissioning.

The PV1 should have been handed over to the navy in September last year but because of the technical defects the sea trials failed and the handing over had been postponed to July this year.

The contract for the delivery of the six vessels was signed between PSC-ND and the government in September 1998.

All six vessels were to be built in collaboration with Germany's GNG Group and handed over to the RMN by 2008.

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