Gulf Oil and Gas accountACCOUNT

Repsol Says Drilling Suspended On Vietnam Oil Block Disputed By China

Source: Reuters 8/2/2017, Location: Asia

Share |
Spain's Repsol said it had suspended oil drilling in a block off Vietnam, where the prospecting in South China Sea waters claimed by China had infuriated Beijing and brought Chinese pressure on Vietnam to stop.

Tension has been growing between Vietnam and China over energy development in the waterway, where extensive Chinese claims are challenged by five Southeast Asian countries and disputed by the United States.

Repsol's chief financial officer, Miguel Martinez, said work had been suspended off Vietnam, according to the transcript of a conference call with analysts last week.

"We are working with the PetroVietnam and with the Vietnamese authorities and the only comment is that right now, operations have been suspended," he said.

"We will have to see what the output is, but as mentioned $27 million is what we have spent till now in this well."

A Repsol official confirmed the suspension on Wednesday, but declined to give further details.

Drilling began in mid-June in Vietnam's Block 136/3, which is licensed to Vietnam's state oil firm, Spain's Repsol and Mubadala Development Co of the United Arab Emirates.

The block lies inside the U-shaped "nine-dash line" that marks the vast area that China claims in the sea and overlaps what it says are its own oil concessions.

China had urged a halt to the exploration work and a diplomatic source with direct knowledge of the situation said that the decision to suspend drilling was taken after a Vietnamese delegation visited Beijing.

"Vietnam decided it didn't want to pick a fight with China over this," the source said.

Foreign Policy magazine said this week that China had threatened military action against Vietnam if it did not stop the drilling. It said that a decision to stop was made following acrimonious meetings of a divided politburo.

Vietnam has not confirmed the suspension of drilling but last week defended its right to explore in the area.

"Vietnam's petroleum-related activities take place in the sea entirely under the sovereignty and jurisdiction of Vietnam established in accordance with international law," Vietnamese Foreign Ministry spokeswoman Le Thi Thu Hang said.

"Vietnam proposes all concerned parties to respect the legitimate rights and interests of Vietnam."

Drilling News in Vietnam >>

Azerbaijan >>  2/22/2018 - It should be noted that well 321 will be drilled to Balakhani X Horizon with depth of 2810 m. We are confident that we will continue to adhere to our ...
Azerbaijan >>  2/21/2018 - It should be noted SOCAR AQS has completed the works on construction of well 324 from stationary platform 7, with target depth of 2800 m, successfully...

Morocco >>  2/21/2018 - SDX Energy Inc., the North Africa focused oil and gas company, announces that the KSS-2 well on the Sebou permit in Morocco was drilled to a total dep...
Australia >>  2/20/2018 - Carnarvon Petroleum has provided an update on its subsurface work in the Buffalo project in WA-523-P. The update follows those previously provided to...

Bangladesh >>  2/20/2018 - Previously, SOCAR AQS won the international tender announced by BAPEX and will drill two exploration and one appraisal well in Bangladesh. ...
Georgia >>  2/20/2018 - Frontera Resources Corporation, the European focused independent oil and gas exploration and production company, is pleased to announce that T-45, the...

Related Categories: Artificial Lift  Cementing, Stimulation  Directional Drilling  Drilling  Drilling Engineering & Equipment Systems  Enhanced Oil Recovery  General  Logging, Perforating, Testing  Offshore Drilling  Reservoir/Completion Consultants  Workover & Well Services  Workover Rigs/Services 

Related Articles: Artificial Lift  Cementing, Stimulation  Directional Drilling  Drilling  Drilling Engineering & Equipment Systems  Enhanced Oil Recovery  General  Logging, Perforating, Testing  Offshore Drilling  Reservoir/Completion Consultants  Workover & Well Services  Workover Rigs/Services 


Vietnam Oil & Gas 1 >>  2 | 3 |

More News

 

Oil & Gas Companies in Vietnam >>


Related Links

Gulf Oil and Gas
Copyright Universal Solutions All rights reserved. - Privacy Policy.