• 9 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 10 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 10 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 11 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 12 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 12 hours VW Fails To Secure Critical Commodity For EVs
  • 13 hours Enbridge Pipeline Expansion Finally Approved
  • 14 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 15 hours OPEC Oil Deal Compliance Falls To 86%
  • 1 day U.S. Oil Production To Increase in November As Rig Count Falls
  • 1 day Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 1 day Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years

Vietnam Makes Bold Move For Oil In Disputed South China Sea

South China Sea

Vietnam has allowed a drillship in a contested part of the South China Sea, according to an industry consultant who spoke to the BBC.

The drillship, Deepsea Metro I, on contract to Talisman-Vietnam, a unit of Talisman Energy—which Spanish Repsol bought back in 2015—is drilling about 250 miles from the Vietnamese coast.

The move is a bold one, because the block where Deepsea Metro I is drilling—called Block 136-03 by Vietnam and Wan-an Bei 21 by China—has already been leased to a company by Beijing – Hong Kong-based Brightoil, which has close ties to the Chinese government. Over the last three years, Hanoi denied Talisman-Vietnam a license to drill in the block in a bid to avoid antagonizing China, but it seems things have since changed.

The report about the start of drilling comes soon after last week, a senior Chinese military official cut short a visit to Vietnam. Fan Changlong, vice-chairman of China’s Central Military Commission, was visiting Vietnam for a “defense border meeting,” as China’s Xinhua agency reported at the time, but left early because of “working arrangements.”

The true reason for the departure, the BBC suggests, may have been news about what Deepsea Metro I is doing in the disputed area.

Last year, China lost an international arbitration case brought to the court by its neighbors, including Vietnam. Asia’s second-largest economy is claiming most of the South China Sea, building artificial islands and increasing its military presence there.

Earlier this year, China warned the U.S. to stay out of the disputed waters, although this tension has recently subsided as both countries continue to focus on the North Korea problem.

The South China Sea may hold 28 billion barrels of oil, according to an estimate from the U.S. Geological Survey from the mid-90s. With technology improvements, this figure could have since increased substantially. Vietnam has welcomed several foreign companies into its oil and gas industry, including Rosneft, and Gazprom, as well as Exxon.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News