China reportedly threatens Vietnam into ending energy exploration in South China Sea

China reportedly threatens Vietnam into ending energy exploration in South
China Sea

Vietnam stopped a company from exploring for energy in contested waters of
the South China Sea after taking threats from Beijing, the BBC reported
early on Monday.

Talisman-Vietnam, a subsidiary of Spanish energy firm Repsol, commenced
gas-drilling operations in an area about 400 kilometers off Vietnam's coast
earlier this month, but Hanoi has since ordered Repsol to leave the zone,
the BBC said, citing an unnamed source.

Last week, Beijing warned Hanoi that it would attack Vietnamese bases in the
Spratly Islands if drilling continued, the BBC continued.

Beijing claims tremendous area

The world's second-largest economy claims a massive section of the South
China Sea that extends roughly 1,000 miles from its southern shores. The
huge area is home to significant energy deposits and the world's busiest
shipping routes. Vietnam, the Philippines, Malaysia, Brunei and Taiwan also
assert sovereign rights over parts of the international waterway.

The site of Talisman-Vietnam's operations is known as Block 136-03 in
Vietnam and Wan-an Bei 21 in China. In 2014, Hong Kong-based firm Brightoil
bought the Chinese rights to the area, according to the BBC.

Hanoi's compliance with Chinese threats, if true, could spell bad news for
Manila and Jakarta, which recently announced bold moves in the
tension-ridden region.

This month, the Philippines suggested it could resume oil and gas drilling
in the Reed Bank after a three-year suspension. Meanwhile, Indonesia has
renamed the northern side of its exclusive economic zone in the South China
sea and could soon use its navy to protect resource exploration.

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Link to Original Article:
http://www.cnbc.com/2017/07/23/china-threatens-vietnam-over-south-china-sea-
drilling.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com