QI Huaigao, “Malaysia’s Policies on Joint Development and the Prospect of China-Malaysia Joint Development”

Pacific Journal, Vol. 29, No. 10 (2021), pp. 64-76.

Abstract: Since the 1970s, Malaysia has engaged in oil and gas joint development / cooperative development with its three maritime neighbors, i.e., Thailand, Vietnam, and Brunei. Malaysia’s policies on joint development have been highly successful for the following reasons. Firstly, Malaysia and its three maritime neighbors are clear about the overlapping area limits of their continental shelf claims respectively. Secondly, there are strong economic benefits and technology-driven incentives. The third is the adoption of appropriate management models, with Malaysia-Thailand adopting a “supranational management model” / “joint authority model,” and Malaysia-Vietnam taking a “joint adventure model” / “oil companies agent model”. Fourthly, the pre existing right of overlapping claims has been properly dealt with, and both Malaysia-Thailand and Malaysia-Vietnam joint development have retained the pre existing right. By learning from the success of Malaysia’s policies on joint development, there is a plenty of room for discussion about China-Malaysia joint development in areas of block selection, management model, technology development, and the handling of the pre existing rights.

Key words: Malaysia; China; Joint Development; Management Model

Author: QI Huaigao, Professor and Vice Dean of Institute of International Studies at Fudan University.

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