• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 6 days By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 2 days Solid State Lithium Battery Bank
  • 14 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 9 hours Bad news for e-cars keeps coming
  • 13 days The United States produced more crude oil than any nation, at any time.

Vietnam Issues Decree Against Illegal Oil & Gas Drilling

Vietnam’s government has issued a decree against illegal oil and gas exploration in its waters in the South China Sea, threatening fines and property seizures for violators, regardless of whether they are Vietnamese or foreign entities.

Vietnam has a long-standing dispute with China regarding offshore exploration in the South China Sea. In fact, China has this sort of disputes with all of its neighbors as it claims territorial rights to most of the basin that may hold 28 billion barrels of oil, according to an estimate from the U.S. Geological Survey from the mid-90s. Since then, with technology improvements, this figure could have increased substantially. Of course, low oil prices or no low oil prices, everyone wants a piece of the oil pie, and China wants the biggest one. 

But Vietnam and the other countries around the South China Sea also want their fair share of the oil wealth, and that is despite the current industry crisis that has made a lot of exploration commercially unviable.

In the last couple of years, Vietnam has been vocal about China interfering with its offshore exploration using threats to discourage these activities. It stands to gain a lot in terms of oil revenues—in a better-price future—if exploration is successful. And it has the support of companies such as Exxon and Rosneft, who appear to share the belief that the Vietnamese section of the South China Sea could become a treasure trove of oil and gas. But China is not backing down.

In July, the media reported that China was exerting pressure on Vietnam to terminate an exploration project in partnership with Rosneft. As a result of this pressure, the Rosneft-PetroVietnam venture canceled an order for a drilling rig it had placed with Noble Corp.

The new decree about offshore exploration could be seen as David flexing his muscles at Goliath with little else it can do to topple the giant or at least push it out of its waters.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • andrew shaw on January 02 2022 said:
    Day dreaming country

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News