Malaysia is stepping up its oil and gas exploration in the South China Sea, a region that China fiercely claims as its own.
China Deploys Coast Guard
Despite having a population of just over 30 million, Malaysia is taking on China, which boasts 1.4 billion people and the world's second-most powerful military.
This development is elevating tensions in one of the most contested maritime areas globally, according to El Economista.
Malaysia's aggressive drilling efforts have sparked an official protest from China, which has deployed its coast guard to warn Malaysia to halt its activities.
The South China Sea, stretching from Singapore and the Strait of Malacca in the southwest to the Taiwan Strait in the northeast, is vital for several nations, including China, Taiwan, the Philippines, and Vietnam, all of which have vested economic and geopolitical interests in the region.
Crossing China's Warning
According to the U.S. Energy Information Administration, the South China Sea is home to an estimated 3.6 billion barrels (b) of oil and 40.3 trillion cubic feet (Tcf) of natural gas.
The U.S. Geological Survey has also indicated that undiscovered resources could add between 2.4 billion and 9.2 billion barrels of oil. However, the viability of extracting these resources remains uncertain.
In early September, China released an official map claiming territorial rights in the region, provoking strong reactions from Malaysia and its neighbors, including Vietnam and the Philippines. Malaysia officially dismissed China's claims as a “unilateral declaration” lacking binding authority.
Despite China’s warnings, Malaysia has continued its oil and gas production and exploration. As a response, the Malaysian government plans to ramp up its output to 2 million barrels per day by 2025, aiming to become a significant player in the global oil market.
This ambitious goal, if achieved, could elevate Malaysia to the 11th position among the world's top oil producers, positioning it just behind oil giants like Kuwait and Iran.
