MALAYSIA said no agreement has been reached on the proposed joint development of the oil-rich ND6 and ND7 blocks—referred to by Indonesia as Ambalat—in the Sulawesi Sea, stressing that the maritime boundary in the area has yet to be finalised.
Deputy Foreign Minister Datuk Mohamad Alamin said the Sulawesi Sea Treaty signed on 8 June 2023 only covers part of the territorial waters off Sabah’s east coast and does not include the disputed blocks, which fall within Malaysia’s Exclusive Economic Zone (EEZ).
“These areas remain outside the scope of the 2023 treaty and lie within the 200-nautical-mile EEZ of Malaysia,” he said in a statement.
Mohamad added that some parties had politicised the treaty by accusing the government of conceding Sabah’s sovereign rights to Indonesia.
He maintained that Malaysia had consistently explained its position through statements in Parliament, the State Assembly, and media briefings.
He acknowledged the significant oil and gas potential in the ND6 and ND7 blocks but said that exploration activities remain on hold due to the unresolved maritime boundary dispute.
“In view of the economic potential, and while border negotiations are still ongoing, there have been suggestions that Malaysia and Indonesia consider joint development,” he said.
Such a proposal, he said, is not new. In fact, in 2022, the then prime minister had directed Petronas to study the feasibility of joint development in the area.
Mohamad confirmed that Prime Minister Datuk Seri Anwar Ibrahim had recently raised the matter during his official visit to Jakarta on 27 June 2025. However, he stressed that any move towards a joint development arrangement remains under consideration.
“It is not finalised. The Prime Minister himself stated that Sabah’s interests must be considered fairly and safeguarded,” he said.
He emphasised that any eventual decision would require extensive consultation with the Sabah state government, as provided for under existing mechanisms such as the Malaysia Agreement 1963 Implementation Action Council (MTPMA63), chaired by the Prime Minister and attended by the Sabah Chief Minister and Sarawak Premier.
“Joint development in the Sulawesi Sea is still being deliberated and has not been agreed upon,” Mohamad reiterated. “Malaysia remains committed to negotiating through the existing frameworks and ensuring that national sovereignty, including Sabah’s territorial interests, will be fully protected.” - July 5, 2025
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