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

Chinese oil rig leaves disputed waters near Vietnam


China Oil Rig

China Oil Rig

A Chinese oil rig has left disputed waters near the Paracel islands in the South China Sea, a month earlier than scheduled, and more than two months after its deployment to waters also claimed by Vietnam. China claims to have found signs of oil and gas, the official Chinese Xinhua news agency said.

Vietnam’s coastguard said the $1 billion deepwater rig was being moved towards China’s southernmost island province of Hainan. China’s official Xinhua news agency said it would be relocated to an area off Hainan but gave no details or a date.

The rig’s relocation could reduce tensions between the two neighbours. It will also likely be welcomed by Washington, which had criticised China’s decision to put the rig in waters disputed with Vietnam, calling it a “provocative” move.

Hanoi has said the rig was in its 200-nautical-mile exclusive economic zone and on its continental shelf. Beijing has said it was operating completely within its waters around the Paracel islands, which China occupy.

China National Petroleum Corporation (CNPC), the dominant oil and gas producer in China, said in a statement the rig “smoothly completed” its drilling on Tuesday and found signs of oil and gas. The next step would be to analyse the geological data and evaluate the layers of oil and gas, it said.

CNPC’s preliminary analysis showed “the area has the basic conditions and potential for oil exploration, but extraction testing cannot begin before a comprehensive assessment of the data”, Xinhua quoted Wang Zhen, deputy director of the CNPC Policy Research Office, as saying.

China had previously said the rig was scheduled to explore the waters around the Paracels until mid-August. It was not clear why it had finished one month ahead of schedule, although Xinhua said July was the beginning of the typhoon season.

China’s popular Twitter-like microblogging service Weibo lit up with criticism of the move. Many people said the government had bowed to the United States, underscoring the domestic pressure Beijing faces to be tough in its territorial disputes.

The Foreign Ministry did not respond immediately to a request for comment but Beijing is likely to dismiss such accusations, given the government insists the area belongs to China and as recently as Tuesday told Washington to stay out of quarrels over the South China Sea.

Wu Shicun, president of the National Institute for South China Sea Studies, a Chinese government think tank on Hainan, said he believed the rig completed its work ahead of schedule because of good weather before the typhoon season began.

“The place has fairly good oil and gas potential. It looks promising,” said Wu, a leading expert on China’s energy ambitions in the South China Sea.

ACTION AT SEA

Admiral Ngo Ngoc Thu, chief of staff of the Vietnam coastguard, told Reuters by telephone the rig was about 30 nautical miles from Triton Island in the Paracels and had been moving towards Hainan since late on Tuesday night. Thu said Vietnamese boats were still watching the area closely.

Deployment of the rig on May 2 set off deadly anti-Chinese riots in Vietnam, while scores of Vietnamese and Chinese ships have regularly squared off around the platform. There have been several collisions.

A Reuters reporter on a Vietnamese coastguard vessel on Tuesday witnessed a group of Chinese ships chase the Vietnamese boat away from the area in what has been a near daily cat-and-mouse routine.

The rig is owned by state-run China National Offshore Oil Company Group (CNOOC Group), parent of flagship unit CNOOC Ltd.

An industry official with knowledge of its operation, speaking on condition of anonymity, said completing the drilling early meant the rig would now be freed up to be contracted out for other jobs.

The rig is China’s newest and most advanced, and can drill in waters up to 3,000 metres (9,840 feet) deep, about double that of the other two rigs China uses for deep sea work, according to industry sources.

China claims 90 percent of the South China Sea. Vietnam, the Philippines, Malaysia, Brunei and Taiwan also claim parts of the waters, whose estimated energy potential varies widely.

Discoveries near the coasts of Southeast Asian countries in recent years have been mostly natural gas, reinforcing the belief among geologists and explorers that there is more gas than oil in the South China Sea.

Chinese industry experts have said the rig had a good chance of finding enough gas to put the area into production. That would give China its first viable energy field in the disputed South China Sea, as well as make it a source of friction with Hanoi for years to come.

The world’s largest energy user imports nearly 60 percent of its oil needs and more than 30 percent of its natural gas.

In a 2013 report, the U.S. Energy Information Administration, a government agency, said geological evidence suggested the Paracel Islands themselves did not have significant potential in terms of conventional hydrocarbons.

However, the chance of making a major gas discovery near the islands was high because there had been several gas finds already in the area, experts have said.

Vietnam has two fields to the left of where the rig had been stationed, much closer to its coast, where U.S. giant Exxon Mobil Corp discovered oil and gas in 2011 and 2012.

Source: Reuters “Chinese oil rig finishes exploration in waters off Vietnam: Xinhua”
 

 

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

3 thoughts on “Chinese oil rig leaves disputed waters near Vietnam

  1. When China says ““smoothly completed” and based on their customary routine of turning black to white, they found nothing there. Vietnam and Exxon Mobil explored and concluded “existence of limited gas and oil but economically, not feasible for investment”. Regardless, it was not natural resources but territorial expansionist act that China went after. Now, faced with determined Vietnamese resistance and finally, the US criticism China is pulling out and hoping to try again, someday. Their problem is, years of distorted history and fabricated claim has created a fanatical pool of blinded nationalists that won’t go away.

    Like

    Posted by tse yang | July 18, 2014, 12:40 am

Trackbacks/Pingbacks

  1. Pingback: China to send 700 combat troops to South Sudan, where civil war has affected China’s investments | China Daily Mail - December 24, 2014

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

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

Type 407 Training Visas

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: