News / Asia

    Chinese Oil Rig Moved Away from Disputed Waters Off Vietnam

    Chinese ships are seen on the horizon guarding the Haiyang Shiyou 981, known in Vietnam as HD-981, oil rig (2nd R) in the South China Sea, July 15, 2014.
    Chinese ships are seen on the horizon guarding the Haiyang Shiyou 981, known in Vietnam as HD-981, oil rig (2nd R) in the South China Sea, July 15, 2014.
    Reuters

    A Chinese oil rig has finished drilling near the disputed Paracel islands in the South China Sea after finding signs of oil and gas and is being moved away from the area, more than two months after its deployment damaged relations with Hanoi.

    The Vietnamese coastguard said the $1-billion rig had been towed from contested waters. China's official Xinhua news agency said the rig would be relocated off the southernmost island province of Hainan. It gave no timeframe.

    The rig's relocation could reduce tensions between the two neighbors after one of the worst breakdowns in ties since they fought a brief war in 1979.

    Its movement toward Hainan is also likely to be welcomed by Washington, which had criticized China's decision to put the rig in waters disputed with Vietnam, calling it a “provocative” act.

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

    China National Petroleum Corporation (CNPC), the country's dominant oil and gas producer, 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 analyze 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.

    But China's Foreign Ministry said the decision was made in accordance with commercial decisions and had “no relation to any outside factor.”

    The government also 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, an expert on China's energy ambitions in the South China Sea.

    Action at sea

    The rig was towed from its original position overnight to beyond what Hanoi considers its exclusive economic zone, Lieutenant-Colonel Ngo Minh Tung of the Vietnamese coastguard told a small group of reporters on one of the maritime agency's ships in the area.

    “According to our assessment and the speed at which it was moving, the rig has left Vietnamese waters,” Tung said.

    The coastguard would stay in the area to protect Vietnamese fishing boats and the country's sovereignty, Tung added.

    On Tuesday, the same coastguard vessel was chased off by a group of Chinese ships in what had been a near daily cat-and-mouse routine between boats from both sides since the rig was deployed on May 2.

    Vietnamese Prime Minister Nguyen Tan Dung demanded that China not send any more rigs into Vietnamese waters.

    The deployment was a major test for Dung, especially when deadly anti-Chinese riots broke out in Vietnam in May, triggering protests from China. Several people were killed.

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

    It is China's newest and most advanced rig, and can drill in waters up to 3,000 m deep, about double that of the other two rigs China uses for deep sea work, industry sources say.

    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, but 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.  

    You May Like

    Video As Refugees Perish, Greek Graveyards Fill

    Before burial at overflowing cemeteries, unidentified dead being swapped for DNA, in case some day relatives come to learn their fate

    Russian Opposition Leader Sues Putin for Conflict of Interest

    Alexei Navalny tells VOA in exclusive interview why transfer of $2 billion from country’s wealth fund to company with ties to President Putin’s son-in-law triggered lawsuit

    How Diversity Has Changed America

    Over the past four decades, the level of diversity in the United States has increased most in these four states

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    As Refugees Perish, Greek Graveyards Filli
    X
    Hamada Elsaram
    February 11, 2016 8:01 PM
    Aid workers on the Greek island of Lesbos say they are struggling to bury the increasing number of bodies of refugees that have been recovered or washed up ashore in recent months.  The graveyards are all full, they say, yet as tens of thousands of people clamor to get out of Syria, it is clear refugees will still be coming in record numbers. For VOA, Hamada Elrasam reports from Lesbos, Greece.
    Video

    Video As Refugees Perish, Greek Graveyards Fill

    Aid workers on the Greek island of Lesbos say they are struggling to bury the increasing number of bodies of refugees that have been recovered or washed up ashore in recent months.  The graveyards are all full, they say, yet as tens of thousands of people clamor to get out of Syria, it is clear refugees will still be coming in record numbers. For VOA, Hamada Elrasam reports from Lesbos, Greece.
    Video

    Video To Fight Zika, Scientists Target Mosquitoes

    Mosquitoes strike again. The Zika virus outbreak is just the latest headline-grabbing epidemic carried by these biting pests, but researchers are fighting back with new ways to control them. VOA's Steve Baragona takes a look.
    Video

    Video Mosul Refugees Talk About Life Under IS

    A top U.S. intelligence official told Congress this week that a planned Iraqi-led operation to re-take the city of Mosul from Islamic State militants is unlikely to take place this year. IS took over the city in June 2014, and for the past year and a half, Mosul residents have been held captive under its rule. VOA's Zana Omar talked to some families who managed to escape. Bronwyn Benito narrates his report.
    Video

    Video Scientists Make Progress Toward Better Diabetes Treatment, Cure

    Scientists at two of the top U.S. universities say they have made significant advances in their quest to find a more efficient treatment for diabetes and eventually a cure. According to the International Diabetes Federation, the disease affects more than 370 million people worldwide. VOA’s George Putic reports.
    Video

    Video NATO to Target Migrant Smugglers

    NATO has announced plans to send warships to the Aegean Sea to target migrant smugglers in the alliance's most direct intervention so far since a wave of people began trying to reach European shores.
    Video

    Video Russia's Catholics, Orthodox Hopeful on Historic Pope-Patriarch Meeting

    Russia's Catholic minority has welcomed an historic first meeting Friday in Cuba between the Pope and the Patriarch of Russia's dominant Orthodox Church. The Orthodox Church split with Rome in 1054 and analysts say politics, both church and state, have been driving the relationship in the centuries since. VOA's Daniel Schearf reports from Moscow.
    Video

    Video Used Books Get a New Life on the Streets of Lagos

    Used booksellers are importing books from abroad and selling them on the streets of Africa's largest city. What‘s popular with readers may surprise you. Chris Stein reports from Lagos.
    Video

    Video After NH Primaries All Eyes on South Carolina

    After Tuesday's primary in New Hampshire, US presidential candidates swiftly turned to the next election coming up in South Carolina. The so-called “first-in-the-South” poll may help further narrow down the field of candidates. Zlatica Hoke reports.
    Video

    Video US Co-ed Selective Service Plan Stirs Controversy

    Young women may soon be required to register with the U.S. Selective Service System, the U.S. government agency charged with implementing a draft in a national emergency. Top Army and Marine Corps commanders told the Senate Armed Services Committee recently that women should register, and a bill has been introduced in Congress requiring eligible women to sign up for the military draft. The issue is stirring some controversy, as VOA’s Bernard Shusman reports from New York.
    Video

    Video Lessons Learned From Ebola Might Help Fight Zika

    Now that the Ebola epidemic has ended in West Africa, Zika has the world's focus. And, as Carol Pearson reports, health experts and governments are applying some of the lessons learned during the Ebola crisis in Africa to fight the Zika virus in Latin America and the Caribbean.
    Video

    Video Smartphone Helps Grow Vegetables

    One day, you may be using your smartphone to grow your vegetables. A Taipei-based company has developed a farm cube — a small, enclosed ecosystem designed to grow plants indoors. The environment inside is automatically adjusted by the cube, but it can also be controlled through an app. VOA's Deborah Block has more on the gardening system.
    Video

    Video Illinois Voters Have Mixed Emotions on Obama’s Return to Springfield

    On the ninth anniversary of the launch of his quest for national office, President Barack Obama returned to Springfield, Illinois, to speak to the Illinois General Assembly, where he once served as state senator. His visit was met with mixed emotions by those with a front-row seat on his journey to the White House. VOA's Kane Farabaugh reports.
    Video

    Video Exhibit Turns da Vinci’s Drawings Into Real Objects

    In addition to being a successful artist, Renaissance genius Leonardo da Vinci designed many practical machines, some of which are still in use today, although in different forms. But a number of his projects were never realized — until today. VOA’s George Putic reports.
    Video

    Video Heated Immigration Debate Limits Britain’s Refugee Response

    Compared to many other European states, Britain has agreed to accept a relatively small number of Syrian refugees. Just over a thousand have arrived so far -- and some are being resettled in remote corners of the country. Henry Ridgwell reports on why Britain’s response has lagged behind its neighbors.
    Video

    Video Russia's Car Sales Shrink Overall, But Luxury and Economy Models See Growth

    Car sales in Russia dropped by more than a third in 2015 because of the country's economic woes. But, at the extreme ends of the car market, luxury vehicles and some economy brands are actually experiencing growth. VOA's Daniel Schearf reports from Moscow.