Indonesia-Malaysia dispute over oil

Indonesia has sent F-16 fighter jets to a disputed border region with Malaysia while President Susilo Bambang Yudhoyono plans to visit the area that includes an offshore oil field both countries claim, officials said Sunday. The mix of saber rattling and diplomacy is the latest sign that tensions over the area in the Sulawesi Sea are rising between the two countries …
Indonesia complained Friday that four Malaysian military aircraft had violated its airspace in the area in the last 10 days, amid reports that Indonesia has deployed warships in the waters near the oil fields.

The International Court of Justice handed Malaysia sovereignty over the region’s Sipadan and Ligitan islands in 2002. But Indonesia claims Malaysia’s water territory only extends 19 kilometers from the islands. However, Malaysia has awarded oil production sharing contracts to Royal Dutch/Shell Group in deep waters near the islands – a move protested by Indonesia.

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