Chinese oil rig to continue drilling in waters off Vietnam

BEIJING • A Chinese oil rig at the centre of last year's stand-off between China and Vietnam will continue drilling not far from Vietnam's coast, China's maritime safety authorities said.

The deployment of the US$1 billion (S$1.4 billion) deepwater rig last year about 120 nautical miles off Vietnam's coast, in what Vietnam considers its exclusive economic zone (EEZ), led to the worst breakdown in relations since a brief border war in 1979.

China said at the time the rig was operating completely within its waters. The rig, called the Haiyang Shiyou 981, was removed last July, but returned to the area in June this year to explore for oil and gas. A notice from China's Maritime Safety Administration said at the time that the rig would carry out "ocean drilling operations" until Aug 20.

In a new notice posted on its website yesterday, the Maritime Safety Administration said that the rig will continue drilling at a position slightly to the north until Oct 20.

On Monday, state media said the rig had completed an exploratory well at its earlier placement.

The rig's intended coordinates put it roughly 110 nautical miles east of the Vietnam coast and 72 nautical miles south of the resort city of Sanya on China's Hainan Island.

China claims most of the potentially energy-rich South China Sea, through which US$5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Brunei and Taiwan also have overlapping claims.

Vietnam remains embittered over a perceived history of Chinese bullying and territorial claims in the South China Sea.

Last week, a new US Pentagon report said China has reclaimed more land in the disputed Spratly Islands than previously known.


A version of this article appeared in the print edition of The Straits Times on August 26, 2015, with the headline 'Chinese oil rig to continue drilling in waters off Vietnam'. Print Edition | Subscribe