Malaysia-Vietnam Joint Development Agreement.

The joint mechanism is therefore a relatively straightforward commercial arrangement whereby each country's rights are managed by their respective national oil companies (PETRONAS of Malaysia and PETROVIETNAM of Vietnam).[3] 5. 1. Debate on joint development (JD) was triggered by the increasing of oil and gas exploitation activities since the 1960s in the marine areas where boundaries pass through or where claims overlap. Article 2(1) under the MOU stated that Malaysia and Vietnam expressly agreed to explore and exploit petroleum in the Defined Area I pending the delimitation of the boundary lines i . To date, Malaysia has had four examples of maritime joint development, and Malaysia's second joint development is with Vietnam, in which both sides reached an MOU to designate their overlapping continental shelf claims of about 2800km² as a Commercial Arrangement Area (CAA). [Extracted from the article]