The debate has been caused by Malaysia's questions over the delimitation of Brunei's Exclusive Economic Zone (EEZ) in the South China Sea.

Tensions reached a crisis point last week when a Malaysian naval gunboat chased a Total exploration vessel away from the disputed Block J, which forced the company to suspend its deepwater exploration activities off Brunei.

Total is developing deepwater block J in partnership with BHP Billiton and Amerada Hess, while Shell is developing the adjacent block K in partnership with ConocoPhillips and Mitsubishi Corp.

The development of deepwater blocks J and K is considered important for Brunei to maintain its current levels of oil and gas output over the coming decade.

Shell is already the leading oil and gas producer both in Brunei and in the neighbouring Malaysian states of Sabah and Sarawak.

The Brunei government is expected soon to approve explorations rights it has agreed to with a Shell Deepwater-led consortium in Block K, although Shell will most likely not begin work in Block K until there is clarity regarding the territorial issue.

Shell Brunei operates four concessions, three in production phases and one in exploration, in Brunei's offshore shallow waters.