Thursday 8 May 2014

WSJ: China parked a giant oil rig in disputed waters off Vietnam

         The Wall Street Journal reports,"when China parked a giant oil rig in disputed waters off Vietnam, it confirmed what Washington and regional governments have long feared: Beijing is taking a major leap in the defense of its territorial claims, testing the resolve of rattled neighbors—as well as the U.S.
At the heart of the latest maneuvering for control in the South China Sea is China's most modern oil rig, deployed by a state-owned oil company off the contested Paracel Islands over the objections of Hanoi, whose coast guard has sought to obstruct the rig's work.
The standoff over the rig has built over several days, bursting into open conflict on Wednesday when Vietnamese officials said that about 80 Chinese vessels had moved into disputed areas near it and that six Vietnamese crew members had been injured in scuffles. Rear Adm. Ngo Ngoc Thu, vice commander of the Vietnamese coast guard, said Thursday that the situation at the site remains tense, with many ships still there".
"Officials from both countries allege its vessels have been rammed by the other. A Chinese Foreign Ministry official demanded on Thursday that Vietnam withdraw its ships.
The rig isn't just any piece of equipment; the 138-meter-high (455 feet) platform is China's first deep-water rig, capable of operating in 3,000 meters of water. Launched with great fanfare two years ago, it was billed as a "strategic weapon" for China's oil industry.
The oil rig is a potential game-changer as it makes possible a long-held Chinese goal; more aggressive pursuit of oil development close to home.
But while the dispute centers on the oil platform—and its promise of unlocking the South China Sea's untapped resources—at the heart of the standoff, security analysts say, are much higher stakes around the precedent the standoff may set and whether China's neighbors and the U.S. will allow it to seize control of strategic resources in disputed areas.
China is testing Washington's commitment to aiding regional partners at a time when some in the region fear the Obama administration's focus on Asia is wavering, security experts said.

Popular Posts