China and India in tussle over Vietnamese oilfield

The exploration of oilfields off Vietnam's coast by India's state energy firm has provoked a stern response by China, opening yet another front in the contest over maritime boundaries in the South China Sea.

India's ONGC is working with PetroVietnam on exploring a block close to the disputed Vietnam-China maritime border. At the time the contract was won, back in 2006, China protested that the area was within its waters. Now, ONGC's return to the area after a pause for technical reasons has resulted in a number of outspoken warnings by China.

The state-run Global Times, a Chinese newspaper, published an editorial accusing India of a “serious political provocation” which could “push China to the limit”. The foreign ministry in Beijing has also said that India's actions were “illegal and invalid”. New Delhi has brushed off the warnings, saying that its actions are in line with international law and that the block is within Vietnamese waters.

The spat is another escalation in tensions between China and its neighbours in the South China Sea, of which it claims a significant area. Vietnam has been a particular focus of Beijing's ire, with a summer marked by tit-for-tat naval drills and mutual recriminations.

They appeared to make up in early September, with an agreement to compromise through friendly consultations, but the rapprochement seems to have fallen apart just as quickly. On 13th September, Hanoi also announced that it would start conducting joint patrols with Indonesia along their mutual border, in a bid to shore up stability in the area.

On 23rd September, the Philippines announced that their efforts to forge a common position among South China Sea states had been successful, with delegates from the Association of Southeast Asian Nations agreeing that the UN Convention on the Law of the Sea should be used to settle regional territorial disputes.

Growing concern at China's claims and gunboat diplomacy is creating an opportunity for India in the region, as the ONGC episode shows. New Delhi is becoming increasingly confident in its dealings with China, and has the potential to begin acting as a counterweight to Beijing for smaller states in the area.

Sources: AFP, Wall Street Journal, Times of India, Global Times

For more news and expert analysis about Vietnam, please see Vietnam Focus.

Thirteen IOC's qualify to bid in Iraq's gas auction

Iraq has said that 13 international oil companies have qualified to bid in next week's gas filed auction for the Akkas field, in the western desert, the Mansuriyah field near the Iranian border in the Diyala province and Siba field near Basra. The three oil fields together have estimated reserves of around 11.23 trillion cf of gas.

"Thirteen companies will take part in the gas auction and no more firms will be allowed," said Head Iraq's Oil Ministry's Licensing and Contracting Office Abdul-Mahdy al-Ameedi.

The 13 companies that have qualified to bid include Edison, Eni, Total, Korean Gas Corporation (Kogas), Mitsubishi, TPAO, Itochu, KazMunaiGaz, TNK-BP, Statoil, India's Oil & Natural Gas Corporation (ONGC), Jogmec and Kuwait Energy.

Source: Upstream

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PetroVietnam reviewing bid for BP asset

The Vietnamese vice president, Do Van Hau, has said that PetroVietnam is reviewing its decision whether to bid for BP's stake in a gas project within the country.

"We haven't asked the government to approve (a deal). We are still considering what we are going to do. We don't have a decision yet. We are reviewing it," said the vice president at a conference in Seoul.

BP plans to sell its 35 per cent stake in the Nam Con Son gas project as part of its programme to cover the costs of the oil spill in the Gulf of Mexico. PetroVietnam has a 20 per cent stake while India's state-run explorer Oil and Natural Gas Corp (ONGC) holds 45 per cent. Indian oil secretary S. Sundareshan said that ONGC and PetroVietnam are considering a joint formal offer to buy BP's asset.

Source: Reuters

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PetroVietnam and ONGC to make joint formal offer to buy BP's Nam Con Son gas project

PetroVietnam has said that it will not participate in a bidding war over BP's stake in the Nam Con Son gas project, and that it will wait for the government's approval before making an official offer.

"We will buy at a reasonable price, not at any price," said, PetroVietnam, chairman, Dinh La Thang.

PetroVietnam has a 20 per cent stake in Block 6.1 in the Nam Con Son basin, off Vietnam's southeast coast. India's state-run explorer Oil and Natural Gas Corp (ONGC) owns 45 per cent and BP, the operator, owns the remainder.

Indian oil secretary Shri S.Sundareshan has said that the ONGC and PetroVietnam will submit a joint formal offer in order to successfully purchase BP's asset.

BP'S plans to sell its stake in the Nam Con Son project are part of the company's aim to sell off $30 billion worth of assets over the next year to cover costs for containing the oil spill in the Gulf of Mexico.

Source: Reuters

For more news and expert analysis about Vietnam, please see Vietnam Focus.