Indonesia–Malaysia confrontation become self-governing in 1959). In May 1961, the UK and Malayan governments proposed a larger federation called Malaysia, encompassing the states of Malaya, North Borneo, Sarawak, Brunei, and Singapore. Initially, Indonesia was mildly supportive of the proposed Malaysia, although the PKI (Partai Komunis Indonesia — Indonesian Communist Party) was strongly opposed to it. In Brunei, it was unclear whether the Sultan Omar Ali Saifuddien III would support Brunei joining the proposed Malaysian state because of the implied reduction of his political office, and Brunei's oil revenues ensured Brunei's financial viability were it to choose independence. Furthermore, a Brunei politician, Dr.
Brunei–Malaysia border the area, specifically in Blocks L and M, in exchange for Brunei giving its claim over Limbang. His comments followed the announcement by Murphy Oil Corp which said that its production sharing contract with Petronas for two petroleum blocks which were situated within Brunei's EEZ claim, had been terminated because they were "no longer a part of Malaysia". In response, Petronas issued a statement on 1 May 2010 confirming that it had terminated its production sharing contracts with its subsidiary Petronas Carigali Sdn Bhd and Murphy Sabah Oil Co Ltd as the two production blocks were no longer Malaysian territory.