Natural Gas Discovery in South China Seas Raising Tensions Between China and Vietnam

First, the good news...

U.S. oil company ExxonMobil is reporting a "potentially significant" gas discovery off the coast of Vietnam, stating in a press release, "We can confirm ExxonMobil Exploration and Production Vietnam Limited drilled its second exploration well offshore Danang in August 2011 and encountered hydrocarbons."

ExxonMobil is the world's largest publicly traded oil company by market value. While Vietnam, an oil exporter and the third-largest oil producer in South Asia, began offshore exploration of its reserves in the 1970s, Hanoi only started in 2004 awarding offshore exploration concessions to a plethora of foreign companies, including those from the U.S., Canada and India with ExxonMobil receiving concessions from the Vietnamese government allowing it to explore blocks 117, 118 and 119 off Danang, an area that Vietnam insists is well within its 200-mile exclusive economic zone under international maritime law.

The bad news?

The South China Sea's offshore resources are currently claimed by six countries
Full article at: Apocalypse Redux? U.S. Natural Gas Find off Vietnam Could Raise Tensions with China

Comments (3)

Oct 31, 2011

this aint a discovery if everyone and his mother knew it was there

Oct 31, 2011

China is going to do all the things the US has been accused of in order to maintain control of this.

WARNING ---> extensive and blatant human rights abuses expected

Oct 31, 2011

My formula for success is rise early, work late and strike oil - JP Getty