Paying China: Petronas oilfields, installations in the South China Sea could go to China as Malaysia flounders trying to pay its chief financier

by Ganesh Sahathevan


Malaysia's growing reliance on the Chinese Government for capital may see China seeking compensation in the form of Malaysia's oil and gas fields and related infrastructure in the South Chin Sea.While ExxonMobil ,Shell and a host of other smaller foreign companies operate those fields pursuant to production sharing contracts , Petronas remains the ultimate  owner of the fields,and the infrastructure.

The resumption of Petronas infrastructure in the South China Sea can
provide China an alternative to its recent island building campaign that has attracted international criticism, in addition of course to whatever oil and gas there may be left in the relevant areas.
As illustrated in these maps, China could dominate the South China Sea very quickly by simply assuming control of a few strategically located fields.