Advertisements
//
you're reading...
Mining & Energy

China sends four oil rigs to South China Sea amid regional tensions


A Chinese Coast Guard vessel (R) passes near the Chinese oil rig, Haiyang Shi You 981 (L) in the South China Sea, about 210 km (130 miles) from the coast of Vietnam June 13, 2014

A Chinese Coast Guard vessel (R) passes near the Chinese oil rig, Haiyang Shi You 981 (L) in the South China Sea, about 210 km (130 miles) from the coast of Vietnam June 13, 2014

China has sent four more oil rigs into the South China Sea in a sign that Beijing is stepping up its exploration for oil and gas in the tense region, less than two months after it positioned a giant drilling platform in waters claimed by Vietnam.

The announcement comes at a time when many countries in Asia are nervous at Beijing’s increasing assertiveness in the potentially energy-rich waters, where sovereignty over countless islands and reefs is in dispute.

Coordinates posted on the website of China’s Maritime Safety Administration showed the Nanhai number 2 and 5 rigs had been deployed roughly between China’s southern Guangdong province and the Pratas Islands, which are occupied by Taiwan. The Nanhai 4 rig was towed to waters close to the Chinese coast.

Earlier this week, the maritime body gave coordinates for a fourth rig, the Nanhai 9, which would be positioned just outside Vietnam’s exclusive economic zone by Friday.

Wang Ching-hsiu, deputy director of Taiwan’s Land Administration Department, said Taipei claimed an exclusive economic zone around the Pratas Islands, but declined to comment on the rig deployments.

China, which regards Taiwan as a renegade province and claims about 90 percent of the South China Sea, said the rigs were in waters close to Guangdong province and Hainan island. The Philippines, Vietnam, Malaysia, Brunei and Taiwan also have claims to parts of the sea.

“For these normal activities there is no need for over-reading or to make any particular links,” Chinese Foreign Ministry spokeswoman Hua Chunying told a daily briefing in Beijing. “Please don’t worry, there won’t be any problem.”

All four rigs are listed as being operated by China Oilfield Services Ltd (COSL), the oil service arm of state-run China National Offshore Oil Company (CNOOC) Group, according to COSL’s 2013 annual report.

Three are deepwater platforms and one is a jackup rig used in shallow water.

Reached by telephone, COSL Chief Executive Li Yong said he had seen the maritime announcement but declined to comment. A CNOOC spokesman also declined to comment.

The Global Times, a popular tabloid published by the Communist Party’s official People’s Daily, quoted Zhuang Guotu, director of the Center for Southeast Asian Studies at Xiamen University, as calling the rig deployment a “strategic move”.

“The increase in oil rigs will inevitably jab a sensitive nerve for Vietnam and the Philippines,” Zhuang said.

CNOOC HAS LONG EYED DEEPWATER

State oil behemoth CNOOC Ltd, a subsidiary of CNOOC Group, has said it had four new projects scheduled to come on stream in the western and eastern South China Sea in the second half of 2014.

It was unclear if the four rigs were part of those projects, but the company has long said that in a bid to boost production it wanted to explore in deeper waters off China.

CNOOC has said it would increase by up to a third its annual capital spending for 2014, to almost $20 billion. That, combined with output declines at major offshore fields in Bohai Bay in eastern China, made it inevitable that Chinese state oil firms would push into the South China Sea, analysts said.

“It does not surprise us that more rigs are being deployed into the South China Sea – especially over the summer, which is a high-drilling-activity period,” said Scott Darling, head of Asia Oil and Gas Research with JPMorgan in Hong Kong.

Roughly 60 percent of CNOOC Ltd’s existing production in China comes from its aging fields in Bohai Bay. Anti-Chinese violence flared in Vietnam last month after a $1-billion deepwater rig owned by CNOOC Group was parked 240 km (150 miles) off the coast of Vietnam.

Hanoi says the rig is in its 200-nautical-mile exclusive economic zone and on its continental shelf. China has said the rig was operating completely within its waters.

Source: Reuters “China sends four oil rigs to South China Sea amid regional tensions”
 
Advertisements

About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee

Discussion

5 thoughts on “China sends four oil rigs to South China Sea amid regional tensions

  1. The wooden boats of barbarian pirates in the past, are replaced by these weaponized Chinese oil rigs during the 21st century. What’s the difference? Pirates were stateless criminals while these oil rigs are officially, sponsored by government of China!

    Like

    Posted by tse yang | June 22, 2014, 9:50 pm

Trackbacks/Pingbacks

  1. Pingback: Chilean titanium explorer seeks strategic partners in China | China Daily Mail - April 4, 2015

  2. Pingback: China is conducting air-sea patrols for Chinese oil rigs in waters disputed with Vietnam | China Daily Mail - October 3, 2015

  3. Pingback: China building 3 more large deep sea oil rigs to explore for oil in South China Sea | China Daily Mail - December 20, 2015

  4. Pingback: China may be building a tunnel under the South China Sea | China Daily Mail - January 2, 2016

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Advertisements

Follow us on Facebook

Craig Hill Training Services Facebook

Get An Australian Diploma

Learn How To Sell Real Estate To Chinese Buyers

Sell Your Real Estate To Chinese Investors

China Daily Mail

China Daily Mail is not affiliated in any way with The China Daily or the government of the People's Republic of China.

Enter your email address to receive an email each time an article is published, or join our RSS feed. 100% FREE.

Want to write for China Daily Mail?

Read "Contributor Guidelines" above to join our team of 68 contributors. Write news or opinion about issues in China, or post photos and video. Promote your own site.

Recent Posts

China Daily Mail Stories Have Been Featured In:

%d bloggers like this: