Kuala Lumpur - Malaysia and Indonesia appear ready to settle a thorny dispute about an oil- and gas-rich area of Borneo.
Reports from Malaysia say the move to resolve the dispute amicably, means the matter won`t go to the International Court of Justice.
Malaysian Foreign Minister Rais Yatim says the two sides have formed a joint working group to study the border conflict over the Ambalat block and to find a solution.
Both countries have claimed the Ambalat block near their common border on Borneo island.
The dispute erupted in February 2005 after Kuala Lumpur granted oil exploration rights to energy giant Shell in the Sulawesi sea near Malaysia`s Sabah state and Indonesia`s East Kalimantan province.
Both countries put warships, fighter jets and troops on standby in the area, raising tensions.
Source: www.radioaustralia.net (19 Mei 2008)
