I remember during Mahathir’s time the Federal government was trying to sell part of Limbang to the Sultanate of Brunei behind close doors. Somehow the news leaked. There was so much opposition from all quarters during that period of time that the Federal government had no choice but to abort the deal. Never cross my mind, that while everyone one was watching Limbang so closely there was another deal which was struck right under our noses. This time it was a territory belonging to Sabah and not Sarawak and the beneficiary Brunei. An age-old conspiracy was being consummated right under our nose.

See Map below. Block L and Block M belongs to Sabah, Malaysia.

On September 28th, 2003,  there was a production sharing contract for Block L and Block M between U S based Murphy Oil Corp and our Petronas Carigali Sdn Bhd for 250,000-300,000 bpd with a life span of between 15 to 20 years.

But on Wednesday  April 21, 2010, Murphy Oil Corp on its website said Petroliam Nasional Bhd (Petronas) has terminated the production sharing contracts for Blocks L and M as they “are no longer a part of Malaysia”.

It seems Murphy Oil Corp was informed by Petronas following the execution of the exchange of letters between Malaysia and Brunei on March 16, 2009, that the offshore exploration areas designated as Block L and Block M were no longer a part of Malaysia.

“As a consequence, the production sharing contracts covering Blocks L and M, awarded in 2003 to Petronas Carigali Sdn Bhd and Murphy, were formally terminated by letter dated April 7, 2010,” Murphy Oil Corp said.

Wow, how did this happen? How come the Federal Government can give away its territory without the knowledge of its citizens. Can they do it? These two blocks Block M and Block L is close to 6000 square Kilometers. These two blocks can produce 250,000-300,000 bpd and has a life span of between 15 to 20 years. This works out to RM1.19 billion a year and RM17.85 billion over the lifespan of these two blocks. This works out to USD20.5 million or RM65.6 million per day in revenue!

With oil royalty for Sabah at 5%, this means Sabah will lose out RM3.28 million a day.

I am truly shocked. What is actually happening here? Is there a side deal between our politicians and the Brunei Sultanate?

I hate to sound melodramatic but unfortunately the truth may be very bizarre. I want to be wrong because if I am not, it means that the forces responsible for the abuse of power, corruption and you name it, of the last 22 years are still in charge.

What has Musa Aman The Chief Minister of Sabah got to say about this? Come on Musa say something? Are you suffering from a strange fecklessness when it comes to UMNO and the Federal Government  and Sabah’s oil?

Read Here what my good friend from Penang, Romerz got to say about this whole thing..

Read HereThe Government of Brunei’s official website on the Petroleum Concession Areas.

Read Here Murphy Oil Corp’s Termination of Contract For Block M and Block L in Malaysia.

  1. veluza says:

    the great blog.amazing,,tengkyu


  2. mulia says:

    nice info, this is really a bloody hell shocking news though


  3. amir says:

    Apapapun, ini sudah berlalu, tiada apa yang boleh dibuat sekarang.


  4. Joshua Kong says:

    JK digest of Feb 2011/3- Block L & Block M = Labuan Malaysia.

    Have you not remember what happened to Labuan in 1984?

    Have you forgotten that the famous and infamous Berjaya Party

    soon collapsed after the 1984 incident of Labuan CHANGE HAND quietly with a hidden agenda?

    Who were whispering then?

    Now it is again connected to Labuan once part of Sabah?

    I come from Labuan and nobody can betray Labuan..

    Did the Chief Minister in 1984 have the power to transfer Labuan

    as the Federal Territory without consulting the people?

    His loss of power may be nothing to do with that but only God knows.

    Could there be a curse somehow of a Two Billion Ringgit drama in BMF

    Hong Kong soon after Labuan deal and the auditor was killed?

    Today we have this “blocks” problem and how much actually change hands

    and who are involved? Some people also knows. So go on whispering now

    and not worth telling to the corrupted MACC which had failed me many times terribly.

    These blocks L and M are near Labuan.

    Did these blocks belong to Sabah or Labuan? Who has power over Labuan

    and who has power over Sabah as far as disposal of public assets are concerned?

    If the present Federal and State Governments cannot tell us, then let a

    Royal Commission of Inquiry RCI be set up to investigate into this massive transaction

    worth tens of Billions of Ringgit in our Sabah shores.

    If these blocks had belonged to Brunei, then why Petronas sign a petroleum

    deal with a foreign operator? Why the foreign operator was quiet over the termination

    of contract if that foreign oil company had incurred so much money in the oil fields?

    So I hope the foreign oil company come clean now.

    Sabah is definitely a great loser in this deal of block L & M and how our public assets

    had been abused by our illegal leaders are on walls.

    I want the RCI to look into the following matters:-

    1. Petronas if it has signed an agreement with Sabah including Labuan in 1976

    after the tragic plane crash has failed in this agreement if Petronas allows Block L &M were ”given back”

    to Brunei just like that when Malaysia go to the world court ICJ twice

    over Sipadan & Ligitan and the Islands of Rock between Johore and Singapore.

    2. Why Malaysia did not bring this to the ICJ over Blocks L and M? Was corruption involved?

    3. How much Sabah stand to lose with the loss of Blocks L and M although

    Petronas retain the extraction contract. Is this extraction contract also sub-contracted

    to the said foreign company? In this way Petronas and the foreign oil company do not

    lose that much except Sabah lose it all in term of royalties. Would Petronas give us the said royalties on the said deal?

    4. The ‘criminal activities’ committed by the various parties concerned

    in this deal as it was not made public until much later when the deal was exposed by some parties.

    Meanwhile Sabah people should bring this case to the Court for a declaration of the

    illegality involved with this transaction. In the meantime the deal should be suspended.

    The Yang Di Pertua Agong should also intervene in this transaction as it is a violation of the sovereignty of Malaysia.

    It is very urgent as we approach General Election 13 which I believe a

    new Federal Government and a new Sabah State Government would be installed.

    So before this happen all the illegal leaders should be stopped in these many similar robberies

    of public assets in Sabah and elsewhere.

    If this is allowed to be perpetrated, Malaysia already in economic crisis is nearer to bankruptcy.

    Joshua Y. C. Kong

    Prime Minister of Interim Good Governance Government of Malaysia


  5. amir says:

    Brunei bukan sudah lama memiliki Blok L dan M?


  6. avenge7fold says:

    heard the issues has been solve & agreement has been sign….you might want to follow up on this…

    happy new year:)


  7. Alex Woetzel says:

    Amazing! For a nice and looking bing all night in this and i eventually thought it was right here!


  8. sirivijaya_empire says:

    so wat is the Islam way to punish these criminals ? poor gals were given the whip!!!! chop head , chop dick head?


  9. wayangkulit says:

    whatever points given, the fact is still the same;that block L & M has been rightfully belongs to Brunei…& we actually going to drill the place together with Brunei…so nothing has change..both of the country will get the fair amount of oil from this area….


  10. ali says:

    your map is wrong. Malaysia Block L & M is different from Brunei’s Block L and M.


  11. Presley says:

    Judging by the map which I just posted earlier, I don’t think Block M and Block L belongs to Sabah in the first place. Block L and M is rightful belong to Brunei..


  12. wayangkulit says:

    I heard that this two oil block will going to be drill in joint venture between Malaysia & Brunei…if this is true, it is kind of relieve to know that we are infact not losing the two block all together….there goes saying “lose some, gain some”…


  13. niterider says:

    If the sabahans and the sarawakians think that by being part of Malaysia will deprive them of their wealth, I guess dr jefry should bring the two states out of malaysia just like Singapore..i just hope that the muslim bumiputra will never be like the singapore malays…


  14. mehmet says:

    my names mehmet.
    I am writing to you from Turkey.
    very nice your blog.
    I really liked the content.
    Thank you.
    elvankent evden eve nakliyat


  15. […] be hang by the balls for misleading Sabahans on this. Even as early as 29th April in my article “Sabah’s Block M and Block L, Is No Longer Part of Malaysia” again on 3rd May another article ” The CM of Sabah Musa Aman Should Be Tried For Treason” […]


  16. […] An oil producing offshore area, Block M and Block L belonging to Sabah near Brunei in the South China Sea is no longer a part of Sabah. It now belongs to Brunei. This Block M and Block L is close to 6000 square kilometers in size, which is like 10 times the size of Singapore. Both the blocks can produce 1 billion barrels of oil  or US$100 billion in revenue and it belongs to Sabah. […]


  17. […] I said in my earlier article that the ceding of Block L and Block M is unconstitutional because such an act of ceding territory […]


  18. Moshe Colina says:

    Is this your initial blog!? I’m pretty convinced I remember you from months back..used to glance over your old blog on a daily basis. Not positive if I’m reckoning about the same someone!


  19. ho says:

    why dont we trace back the history of this whole thing, right from beginning… which i have no idea


  20. 2PM says:

    This nes is way too shocking. I mean c’mon, nowadays politicians and Government alike is un-trustable. Hope this isu will not be politicize in their campaigns..


  21. Leon says:

    Well, all I heard and read about is speculations, speculations and more speculations. Things have quiet down for a while now. No more huuha-huuha from the oppositions side especially SAPP. I remember they are the one who said the blocks being given away is a high treason. So, why the silence now? Weird..


  22. SE W850i says:

    Because of this block and issues behind this, there a lot of people making assumptions and speculation. By not explaining further, it will only make matters much more worse.


  23. Ulam says:

    Nasi sudah pun menjadi bubur.


  24. Salim says:

    Pasal royalti minyak itu dah lama berlaku sejak pemerintah Harris Salleh lagi.


  25. Nicole says:

    Everyone have their own knowledge about this issue but no one will find the truth about it until one day the truth will revealed. Either it is actually benefits to Malaysia+Sabah, or only benefited to Malaysia…. well, someday the truth will revealed.


  26. Iman says:

    So, Mahathir is actually a pot calling the kettle black, since he attempted to sell Limbang to Brunei behind our backs.


  27. Ujin says:

    Weird and SHOCKING!!!!
    The F. government didn’t even ask and tell the citizens about it.
    Bad moves people…bad one…


  28. blur says:

    nothing we can do to get it back.. it will be a lesson for leader for keep silent and ignoring people voices and view..


  29. buku says:

    sewajarnya isu ini diperjelaskan oleh yang terlibat kerana pelbagai spekulasi yang telah dibuat berkaitan dengan isu ini boleh disalah faham dan boleh menimbulkan kemarahan


  30. blizz says:

    artikel ini jelas menyatakan ada di sebalik yang berlaku tidak disedahkan kepada rakyat sabah. setakat ini apa yang dinyatakan adalah hanya spekulasi saja dan walau macammana pun penjelasan yang dibuat, ia akan menimbulkan persoalan dan pertikaian pelbagai pihak. Mungkin pihak-pihak yang terlibat enggan mengulas lebih lanjut tentang blok M dan L ini dan mereka memilih untuk berdiam diri sahaja.


  31. partenos says:

    Saya rasa ada disebalik isu blok M dan L ini yang sebenarnya tidak didedahkan kepada rakyat Sabah. Win-win situation yang telah digunapakai untuk menyelesaikan isu ini menunjukkan sudah banyak perbincangan diadakan antara kedua pihak. Pendedahan isu yang sebenar saya kira bakal menyentuh hubungan baik antara kedua-dua negara yang selama ini bersahabat baik.


  32. alai says:

    government must be had lesson for this matter, so.. government must explanation to all people especially people of sabah


  33. […] I said in my earlier article that the ceding of Block L and Block M is unconstitutional because such an act of ceding territory […]


  34. adamckteh says:

    Hammer down! sold. So what Sabahans going to do? Sit back and take no actions.
    Sabah’s future is in the hands of Sabahan.
    Your next move.


  35. Nicole says:

    Under Malaysian Law both block is actually under Federal Jurisdiction. So meaning to say Sabah did not have any power to change/ say no / negotiate to these matter….


  36. Anonymous says:

    well, this is really a bloody hell shocking news though.


  37. andre says:

    I agree with that



  38. […] An oil producing offshore area, Block M and Block L belonging to Sabah near Brunei in the South China Sea is no longer a part of Sabah. It now belongs to Brunei. This Block M and Block L is close to 6000 square kilometers in size, which is like 10 times the size of Singapore. Both the blocks can produce 1 billion barrels of oil  or US$100 billion in revenue and it belongs to Sabah. […]


  39. […] full post on brunei « WordPress.com Tag Feed Interesting Stuff Malaysia Singapore & Brunei (Country Guide)Lonely Planet has been the guidebook […]


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