Showing posts with label Oil exploration. Show all posts
Showing posts with label Oil exploration. Show all posts

Tuesday, June 26, 2012

Chevron report completed

A tuk tuk driver parks outside a Caltex petrol station in Phnom Penh yesterday. Photograph: Pha Lina
Tuesday, 26 June 2012
Don Weinland
The Phnom Penh Post

Chevron has completed an environmental assessment for oil production in Cambodia’s Block A offshore oil field, a step insiders called important for the proposed extraction that appeared to stall early this year.

The Environmental Impact Assessment (EIA), completed in March and obtained yesterday by the Post, was the first to be seen publicly after Chevron’s 10 years in the Kingdom.

Documenting a rough three-phase plan, the EIA shows Chevron building up to 10 platforms during a nine-year period.

Risks associated with Chevron’s potential production were listed as “low” or “insignificant”.

Wednesday, February 08, 2012

Cambodia Expects Offshore Crude Field to Start Up This Year

By Rakteem Katakey and Supunnabul Suwannakij

Feb. 7 (Bloomberg) -- Cambodia expects oil production to start in the offshore Block A by the end of this year, said Deputy Prime Minister Sok An.

The country is reviewing the field operator Chevron Corp.’s offshore production license this year, said Sok An at an energy conference in Bangkok today. The company found oil and gas in waters off the country in 2005, he said today.

--Editors: Christian Schmollinger, Baldave Singh

Tuesday, February 07, 2012

Cambodia to issue production license to Chevron

Tuesday, February 07, 2012
By Oranan Paweewun

BANGKOK (MarketWatch) -- Cambodia plans to issue a license to Chevron Corp. allowing it to produce oil at the country's Block A, Deputy Prime Minister Sok An said Tuesday.

Production at Block A is expected to begin by the end of this year, he told reporters on the sidelines of an energy forum in Bangkok.

Wednesday, July 13, 2011

Thaksin oil deal interrupted

Hun Sen embraces Thaksin Shinawatra during a meeting in Phnom Penh in December 2009. (Photo by: Reuters)

Wednesday, 13 July 2011
Post Staff
The Phnom Penh Post
The leaked documents also shed light on the relationship between the ousted Thai prime minister – whose sister won a national election in Thailand this month – and Cambodia. In a cable in December 2009, a visit to Phnom Penh by Thaksin was seen by most observers as “a continuation of Hun Sen and Thaksin using each other for personal gain”.
CAMBODIA and Thailand were nearing a resolution over the disputed oil blocks in the Gulf of Thailand just as Thaksin Shinawatra was ousted from office in 2006, a US embassy cable revealed yesterday.

The cable, dated May 15, 2007, details the visit of the US-ASEAN Business Council to Phnom Penh. During meetings with high-ranking officials, the cable states that representatives from US energy giant ConocoPhillips urged the government “to resolve the dispute with Thailand over the Overlapping Claims Area in the Gulf of Thailand. Noting that their firm has held a contract for exploitation of the area for nearly ten years”.

During the meeting, however, Secretary of State at the Ministry of Foreign Affairs Kao Kim Hourn told the company that “the two governments had come very close to settling the dispute just prior to the fall of the Thaksin government in Thailand,” the leak stated.

“He said they had agreed on a formula for dividing the revenue: 80% for Thailand and 20% for Cambodia in the tier nearest Thailand, 50%-50% in the middle and 20% for Thailand and 80% for Cambodia in the area closest to Cambodia,” it added.

Sunday, February 13, 2011

A battle at the temple of doom

12-02-2554
By Achara Ashayagachat
IndochinaPublishing.com

KI-Media would like to thank Lok Bora Touch for pointing out this article.

But deep down, observers said border disputes always involved business dealings that would come with the success of demarcation. There were talks about Hun Sen, his deputy prime minister Sok An and Hun Sen's would benefit from oil and gas concession fees from multinational companies if Cambodia could convince Thailand in negotiating the maritime territorial in the format of Joint Development Area (JDA) development and with the same revenue-sharing as featured in the Thailand-Malaysia JDA model.

Stepping out from self-centrism, it would be easier to understand why Thailand and Cambodia have recently re-engaged in nasty battlefield and table wars again-----the two countries have fallen victim to the myths of nationalism during the past century incomplete nation-building process.

Sharing the Ankorean heritage thousand years ago, Siam and Khmer empires had been positively and negatively emulated each other through cultural and language exchanges such as mythology, royal cults, dance and architecture. But with the newly-emerged concept of space and border, they have to outdo each other economically and politically as well.

Disputes involving the Hindu Preah Vihear Temple have begun since the International Court of Justice ruling in 1962 that the over-900-year-old Temple belonged to Cambodia.

However, the less-clear reference to the land surrounding the temple has ignited the controversial contest again when the "owner" would like to exploit the ruined artifacts de facto in economic terms by unilaterally listing the Temple as a world heritage site in 2008.

Thanks to Thailand's messy politics, the Cambodia-friendly nominee government of the ousted Prime Minister Thaksin Shinwatra was forced to bow out to the old powers-appeasing new leadership led by Abhisit Vejjajiva, who pledged during his opposition time to "reclaim the Temple" --- the mission in which Marshal Sarit Thanarat (in the ICJ ruling era) could never finish.

Tuesday, May 04, 2010

Japanese oil company to survey Cambodian basin

May 4, 2010
The Associated Press
PHNOM PENH, Cambodia


A state-affiliated Japanese oil company was Tuesday granted rights by the Cambodian government to survey for oil around Southeast Asia's largest freshwater lake.

The Japan Oil, Gas and Metals National Corporation will conduct a study over 6,500 square kilometers (2,509 miles) of the Tonle Sap basin, located about 200 kilometers (120 miles) northwest of Cambodia's capital Phnom Penh.

The lake covers about 250,000 hectares (618,000 acres) during the dry season and expands to about 1.25 million hectares (3 million acres) during the rainy season.

It is known as a rich habitat with more than 200 species of fish, 42 types of reptiles, 225 species of birds and 46 kinds of mammals.

In the past, conservationists have expressed concern that oil projects could damage the basin's environment.

The government, which has promoted oil exploration in the Tonle Sap region as part of its energy strategy, says that it will protect the lake from environmental damage.

Fumiaki Fujita, a representative of the Japanese oil company, said it will first conduct onshore geological and geophysical surveys to assess oil reserves. If oil is found, the company will negotiate with the government for full-scale exploration of the area.

Wednesday, September 16, 2009

Mitsui seeks Gulf of Thailand rights from Cambodia

Wed Sep 16, 2009

PHNOM PENH, Sept 16 (Reuters) - Japanese oil and gas firm Mitsui Oil Exploration Co has applied to Cambodia for exploration rights in an area of the Gulf of Thailand claimed by both Cambodia and Thailand, officials said on Wednesday.

Cambodia's government spokesman, Ieng Sophalleth, said Mitsui's chairman, Yoshiyuki Kagawa, "assured the prime minister during a meeting on Tuesday that the company was determined to invest in block four" in the contested area.

"Prime Minister Hun Sen told the company's chairman that he welcomed all companies to join in the bidding process in a transparent way," Sophalleth told Reuters by phone.

Mitsui Oil Exploration Co is a unit of Japanese trading house Mitsui & Co Ltd.

Hang Chuon Naron, secretary general at the finance ministry, said the government would take some time before granting any concession.

"And Mitsui will have to talk with the Thai side at a later stage on the oil exploration and production," he told Reuters.

Cambodia's exploration area covers 37,000 square km (14,300 sq miles). Another 27,000 square km (10,400 sq miles) thought to be rich in oil and gas deposits is claimed by Thailand.

In February Hun Sen said, referring to the disputed area, that Cambodia's government would "adhere to principles of international law, the win-win policy and good neighbourliness in resolving various issues with all parties involved".

Cambodia does not yet produce oil. Chevron Corp is the operator of Block A in the Gulf of Thailand but is unlikely to produce oil before 2010 at the earliest.

(Reporting by Ek Madra; Editing by Alan Raybould)

Monday, May 25, 2009

Thai instability blamed for delays in oil talks

Monday, 25 May 2009
Written by Ros Dina
The Phnom Penh Post


Negotiations on overlapping areas in Gulf of Thailand stalled by political unrest, says CNPA, after Chevron's call for resolution.

THE Cambodian oil authority said at the end of last week that Thailand's recent political instability had delayed negotiations between the two countries over the vast disputed offshore area in the Gulf of Thailand that potentially holds marketable oil reserves.

Te Duong Dara, director general of the Cambodian National Petroleum Authority (CNPA), said that Thailand's recent turmoil and change of personnel in government meant that a clear policy on the issue had not been established in Bangkok, adding that Cambodia would have to wait until its neighbour's political situation improved before readdressing demarcation of the disputed 27,000-square-kilometre offshore area.

"Specific work teams are needed for negotiations, but they are not in place yet. For us, there are no changes, but Thailand has political instability. They do not have a work team leader or technology team leader yet, so we have to wait until the political turmoil subsides."

Thai embassy First Secretary Kamrob Palawatwichai declined to comment on Sunday.

An oil industry specialist working for a Thai company who declined to be identified said Sunday that delays in the process were partly due to political instability, meaning that policy and personnel on the issue had yet to be decided in Bangkok, but added there were additional factors.

He said that low oil prices meant that the incentives for new exploration were not currently there, while uncertainty of deposits in the disputed area was likely another factor - if the area was known to hold large deposits, undoubtedly the process of resolving the issue would speed up, he added.
"[oil companies] want both countries to find a solution as soon as possible."
The Bangkok Post reported last week that the US-based energy company Chevron - which operates Cambodian offshore concession Block A - had called upon Cambodia and Thailand to speed up negotiations on disputed offshore areas where, it said, it was "ready to take part in developing ... as soon as the resolution is made".

"They [oil companies] want both countries to find a solution as soon as possible so that they will benefit from a solution," Te Duong Dara said in response to Chevron's call.

Government Spokesman Khieu Kanharith reacted at the end of last week by saying that Chevron did not need to push the issue given that Cambodia has been working on a resolution to the overlapping-claims issue for some time.

Te Duong Dara said that the Kingdom remained in discussions with Chevron over an extension to the operating licence for Block A, which could extend for a further two months, he added, despite the last agreement having expired in April.

"We have our own strategies for negotiating, and we will see what the result is," he said, adding that it would take up to a further three years to market oil from the offshore block.

Both sides have refused to disclose details on the negotiations.

Friday, October 31, 2008

Hanoi's Petrovietnam performing oil exploration in Cambodia? ... Oil Concessions given to Vietnam by Hun Sen regime?

Vietnam approves fund to finance oil exploration

31 Oct, 2008
REUTERS

HANOI: The Vietnamese government said on Friday it had approved an investment fund to finance oil exploration projects at home and abroad by state oil monopoly Petrovietnam.

The government said in a directive it would use about 10 per cent of the royalty from crude oil sales to contribute to the oil exploration fund but did not disclose the value of the fund.

Petrovietnam would also contribute 10 per cent of its annual after-tax earnings to the fund, the directive said.

Petrovietnam has been searching for oil assets abroad including exploration projects in Russia, Algeria, Mongolia, Iran, Myanmar, Laos, Cambodia and Indonesia.

Tuesday, August 05, 2008

Kuwait to Train Cambodians in Oil Exploration

By Heng Reaksmey, VOA Khmer
Original report from Phnom Penh
04 August 2008


Kuwait will help Cambodia with oil exploration, following a meeting Monday between Prime Minister Hun Sen and Kuwaiti Prime Minister Sheik Nasser Al-Sabah.

"Kuwait agreed to send an expert to train Cambodians over oil exploration," government spokesman Khieu Kanharith said after the meeting.

Cambodia is exploring several blocks for offshore oil, attracting the interest of US, French, Japanese and Chinese companies.

Kuwait and Cambodia also agreed to establish embassies and direct flights, while Kuwait will pursue increased agricultural investment in Cambodia, Khieu Kanharith said.

Thursday, July 31, 2008

Beijing threatens ExxonMobil over deal with Vietnam in South China Sea

Wednesday, July 30, 2008
World Tribune (USA)

China issued a sharp warning to the world’s largest corporation, ExxonMobil, over an oil deal with Vietnam. Hanoi has indirectly responded that its agreement is in force and will proceed.

A Hong Kong newspaper says Beijing’s diplomats have threatened retaliation if ExxonMobil goes ahead with a preliminary agreement with the Vietnamese state oil firm PetroVietnam. The deal covers exploitation in the South China Sea off Vietnam's south and central coasts, according to the Sunday Morning Post.

Beijing claims a huge swath of the South China Sea just east of the Indochina peninsula and west of the Philippines and has acted to control sea lanes and oil rights in the area with several military skirmishes. The most serious occurred in 1976, when China invaded and captured the Paracel Islands from Vietnam. In 1988, Chinese and Vietnamese navies clashed at Johnson Reef in the Spratly Islands, sinking several Vietnamese boats and killing more than 70 sailors.

The Hong Kong newspaper quoted unidentified sources saying Exxon Mobil was confident of Vietnam's sovereign rights to the blocks it was now seeking to explore. But it is clear that ExxonMobil could not dismiss China's warnings out of hand given the rapidly increasing Chinese market for crude oil and oil products.

The newspaper said China's foreign ministry did not immediately respond to queries about the situation, and an Exxon Mobil spokesman refused comment. However, Vietnamese Foreign Ministry spokesman Le Dung came back with the assertion “that Hanoi's dealings with foreign oil partners fell entirely within Vietnam's legal rights and sovereignty.”

Last year, Chinese media targeted an agreement between Vietnam and BP near the Spratlys maintaining that those islands had been an “indisputable part of Chinese territory since ancient times.” The Spratlys, like other island groups in the region, are uninhabited rocky outcroppings and coral but are in an area that may contain large oil and gas deposits.

The islands also lie directly across the major shipping route for oil from the Persian Gulf to markets in China, Japan, South Korea and Taiwan.

China is an ancient enemy of Hanoi dating back over centuries even though the two countries were allied after the Chinese Communists came to power in 1949. That lasted through the two Vietnam wars, one between the French and the Vietnamese and the other the U.S. engagement. But it fell apart in 1979 when the two countries fought a brief border war after Vietnam occupied Cambodia — another instance of an ancient and bitter rivalry — and overthrew the pariah Khmer Rouge regime, a staunch ally of Beijing.

China-Vietnam relations have since improved with the Vietnamese adopting what many call the post-Deng Xiaoping China model of development. On June 21, the Vietnamese Communist Party newspaper Nhan Dan reported Vietnamese Communist Party General Secretary Nong Duc Manh had successfully concluded an official visit to China at the invitation of the Chinese Party General Secretary and President Hu Jintao.

In fact, Vietnam and China have agreed to cooperate in oil and gas exploration in the Gulf of Tonkin just off the northern Vietnamese major port of Haiphong. But still, last year BP halted plans to conduct exploration work off the southern Vietnamese coast, citing territorial tensions caused by Chinese claims. And in December, China chided Vietnam after protests in front of the Chinese Embassy in Hanoi proclaimed that the Spratly and Paracel islands belonged to the Vietnamese.

Friday, July 25, 2008

Vietnam signals it wants ExxonMobil deal despite China warning

HANOI (AFP) — Vietnam on Thursday signalled it wants to continue with a joint oil exploration project with ExxonMobil in disputed waters, despite a warning from China to the US energy giant to drop the deal.

Vietnam -- without mentioning the specific contract, a preliminary co-operation pact with state-run PetroVietnam -- reasserted its claim over parts of the South China Sea that are the subject of a dispute with China.

"We have confirmed that all Vietnamese cooperation with foreign partners in the field of petroleum is conducted in Vietnamese territorial water and in the exclusive economic zone," said foreign ministry spokesman Le Dung.

"These are totally under the sovereignty and right of Vietnam and in line with the 1982 UN Convention on the Law of the Sea as well as other bilateral and multilateral agreements between Vietnam and foreign partners."

Hong Kong's Sunday Morning Post newspaper, citing unnamed sources close to ExxonMobil, reported this week that China had warned it to drop the deal and said the project could threaten future mainland contracts.

Beijing, which is in dispute with a number of nations as it claims vast swathes of the South China Sea, says Vietnam's central and southern offshore coastal waters -- site of the exploration -- are part of its historic territory.

China's Foreign Ministry spokesman Liu Jianchao on Wednesday told a press briefing: "China's position on the South China Sea is clear and consistent. As for the case you mentioned (the Vietnam-ExxonMobil deal), China has stated our position to relevant parties.

"China opposes any actions that infringe upon China's sovereignty, sovereignty rights and jurisdiction over the South China Sea."

But Le Dung said on Thursday that "Vietnam will ensure all the legitimate interests of foreign investors when they operate in Vietnam.

"We welcome and shall facilitate all cooperation with foreign partners, including Chinese investors operating in Vietnam, on the basis of full respect for our sovereignty."

Last year, China criticised a joint deal between Vietnam and British energy giant BP near the disputed Spratly Islands in the South China Sea, saying the area has been an "indisputable part of Chinese territory since ancient times."

China and Vietnam -- who in 1979 fought a short border war after Vietnam expelled the Beijing-backed Khmer Rouge from Cambodia -- also fought a brief naval battle in 1988 near the Spratly Islands.

Sunday, July 20, 2008

China warns Exxon over Vietnam deal-newspaper

20 Jul, 2008
REUTERS

HONG KONG: China has warned Exxon Mobil Corp to pull out of an exploration deal with Vietnam, describing the project as a breach of Chinese sovereignty, a Chinese newspaper report said on Sunday, citing unnamed sources. The article, which cited "sources close to the US firm", said Chinese diplomats in Washington had made repeated verbal protests to Exxon Mobil executives in recent months, and warned them its future business interests on the mainland could be at risk.

The protests involve a preliminary co-operation agreement between state oil firm PetroVietnam and Exxon Mobil covering exploration in the South China Sea off Vietnam's south and central coasts, the article said. It did not state when the co-operation agreement was signed. The report quoted the unnamed sources as saying Exxon Mobil was confident of Vietnam's sovereign rights to the blocks it was exploring, but it could not dismiss China's warnings out of hand.

The newspaper said China's foreign ministry did not immediately respond to queries about the situation and an Exxon Mobil spokesman refused to discuss any approaches from China. But it quoted Vietnamese Foreign Ministry spokesman Le Dung as saying it needed to be "clearly asserted" that Hanoi's dealings with foreign oil partners fell entirely within Vietnam's legal rights and sovereignty. China and Vietnam have a number of festering disagreements about territory.

The two countries dispute sovereignty over the Spratly Islands, a string of rocky outcrops in the South China Sea suspected of containing large oil and gas deposits and also claimed by Taiwan, Brunei, Malaysia and the Philippines. China supported the Vietnamese Communists in their decades-long war against South Vietnam and its US sponsors. But Vietnam has traditionally been wary of its larger Asian neighbour and in 1979 the two countries fought a brief border war after Vietnam occupied Cambodia and overthrew the murderous Khmer Rouge regime that favoured Beijing.

Though Vietnam and China have agreed to cooperate in oil and gas exploration in the Gulf of Tonkin in the north, last year BP Plc halted plans to conduct exploration work off the southern Vietnamese coast, citing the territorial tensions. And in December China chided Vietnam after protests in front of the Chinese Embassy in Hanoi proclaiming that the Spratly and Paracel islands belonged to the Vietnamese.

Friday, March 21, 2008

ATI Petroleum to explore and produce oil in Blocks 10 and 15 onshore of Cambodia

Dr Huu Duc Dinh, President and CEO of ATIPetroleum, Has Met EFI and Actifin to Discuss the Company's Current and Future Business Developments in ATIP's Paris Office

PARIS - (Business Wire) EFI, ATIP’s investment banker, responsible for listing the company on the Marché Libre, along with Actifin, ATIP’s communication and Public Relation agency met with Dr Huu Duc Dinh in Paris this week.

The parties discussed the following ATIP’s development programs.

For the past several months, Dr Huu Dinh, President and CEO of ATIP (Paris:MLATP), has been extensively travelling to Canada, Vietnam and China to take care of several business opportunities regarding the oil, gas and uranium exploration and production.

Dr Huu Duc Dinh also participated in different business meetings with partners such as Petroleum Singapore Company (SPC), Petronas Carigali Overseas Sdn. Bhd. (PCOSB) and Petrovietnam Exploration Production Corporation (PVEP) in Vietnam and Malaysia to discuss future business developments for blocks 102 and 106 in the Gulf of Tonkin in Vietnam. The terms of the production sharing contract (PSC) signed by ATIP with Petrovietnam are twenty-five (25) years. Regarding the Exploration Activities in Year 2008, the Proposed Work Program includes the detailed planning of the drilling, exploration, and appraisal to prepare for oil & gas production phase for Blocks 102 and 106; as well as the possibility to integrate other discoveries in adjacent blocks. The following will be done in respect of future production and commercialization based on data received from the operator regarding the proven reserves.

As mentioned in an earlier press release, the Confederation of Aboriginal People of Canada and ATIP have signed a contract on 09/10/2007 in Paris for the purpose of exploring and exploiting oil, gas and mineral in Canada. Available oil, gas and uranium resources in Canada will open up opportunities for long term international business cooperation between the two partners.

The Republic of Guinea Bissau has sent an invitation letter to Dr. Huu Dinh, to allow him and his staff to visit Guinea Bissau. This trip will allow ATIP to invest in petroleum exploration and development of two blocks, located offshore of Guinea Bissau. For the time being, several major international oil & gas companies are actively conducting exploration and production activities in this country. ATIP’s delegation includes Mr. Christophe Giovannetti, Director of Business Development, Mr. Nguyen Van Trung, Corporate Development Director, and Ms. Luong Thanh Huyen, Senior Geologist, and it will go to Guinea Bissau to sign the PSC.

Actively researching and catching up with the trend, ATIP is committed to explore and produce oil and gas in Blocks 10 and 15 onshore of Cambodia. This would be mutually beneficial for ATIP and Cambodia. Returns from investment in the oil and gas industry will help build roads, hospitals and schools and enhance the living standard of Cambodians. The discovery of oil and gas has nurtured hope for an economic re-birth in Cambodia. The Production Sharing Contract of petroleum will be signed in 2008.

ATIP has signed the contract of exploration and production of 2 Uranium blocks with Niger on October 3rd 2007. Geological study and reserve evaluation for those 2 blocks are currently in process.

In Tunisia, ATIP has been allowed by the Tunisian Government to study data of 2 blocks of oil & gas on July 30th 2007. The production sharing contract of petroleum will be signed in 2008.

ATIPetroleum
Estelle Richards, 06 34 15 61 52
Investor Relation Coordinator

Friday, February 01, 2008

Hun Sen Supports Cambodia's Partnership With Chevron


TVK

On 29 January, Cambodian Government-run Phnom Penh Television Kampuchea in Cambodian at 1200 GMT carried a two-minute video report, in its primetime evening newscast, on Cambodia's Prime Minister Hun Sen receiving Joe GeaGea, manager of Chevron's Asia South business unit, in Phnom Penh on 29 January.

The announcer says that at the meeting, Joe GeaGea informed the prime minister that he has been appointed manager of Chevron's Asia South business unit only two weeks ago and that his visit was to "reaffirm to Samdech Decho Hun Sen cooperation between Cambodia and Chevron as well as the company's resolve to continue cooperating with Cambodia to contribute to exploiting oil and natural gas resources." He also said his company ardently believed in continuing to "work as Cambodia's partner."

The announcer says Joe GeaGea also "requested support from Samdech Decho for his company's operations in Cambodia," because this company has had experiences and been located in Thailand for about 30 years. He "invited His Excellency [HE] Deputy Prime Minister Sok An and a Cambodian National Petroleum Authority delegation to visit the company's oil rigs in the Gulf of Thailand."

The announcer says Hun Sen "supported Chevron's partnership with Cambodia," and through this, he expressed his "personal intention of wanting the Cambodian delegation to visit the Chevron's oil rigs in order to draw experiences from the company in the interest of exploiting mine, gas, and oil resources in the Kingdom of Cambodia."

Wednesday, January 09, 2008

Chinese oil exploration ship arrives in Cambodia

Chinese oild exploration ship, the BINHAI 517, is seen docking in the Sihanoukville seaport (Photo: Ta Som, Koh Santepheap)

Wednesday, January 9, 2008
Everyday.com.kh
Translated from Khmer by Socheata

An oil exploration ship belonging to the People’s Republic of China has arrived in the port of Sihanoukville, in the afternoon of 07 January 2008 to conduct an oil exploration in the Cambodian seas. The ship will perform its exploration, based on an agreement with the Royal Government of Cambodia, in Cambodia Bloc F, extending from in front of the seaport built by Oknha Mong Riththy to Koh Rong Islands. The ship will conduct its exploration for a 20-day period, starting from 08 January. Exploration in Cambodia Bloc F revealed that natural gas was found and can be exploited, this is the reason of the Chinese ship visit. The Chinese ship will also provide a more accurate account of oil estimate prior to official oil extraction. The ship is manned by 37 Chinese experts who will be participating in the exploration.

Wednesday, December 19, 2007

China, Vietnam churn diplomatic waters [-Vietnam gets a taste of its own medicine]

Dec 20, 2007
By Andrew Symon
Asia Times (Hong Kong)


Just as Hanoi prepared to enjoy the rewards of a diplomatic charm offensive, culminating in taking up for the first time a non-permanent seat on the United Nations Security Council beginning next year, tensions have resurfaced with China over long-disputed and potentially oil-and-gas rich territories in the South China Sea.

Public exchanges between Hanoi and Beijing asserting their respective territorial claims of the Paracel Islands, in the north of the South China Sea, and the Spratly Islands in the south, and surrounding waters are becoming increasingly shrill.

Underscoring the escalation of words, Vietnam authorities for the first time in recent memory permitted several hundred students and others to demonstrate over the past two weekends outside the Chinese embassy in Hanoi and consulate in Ho Chi Minh City.

Waving Vietnamese flags and wearing T-shirts with the red and gold starred Vietnamese flag, protestors held maps of the disputed islands and signs saying ''China hegemony jeopardizes Asia'' and ''Beware of the invasion." They were quoted as shouting ''Defend the homeland''and ''Down with China.''

Given the usual official intolerance of public demonstrations in Vietnam, the fact that these protests were allowed indicates that the dispute over the South China Sea, or what Vietnam refers to as the East Sea, has the potential to dangerously escalate moving into 2008.

There have been occasional naval clashes over the Spratly Islands. In 1988, China and Vietnam clashed over possession of Johnson Reef in the Spratlys. Chinese gunboats sank Vietnamese transport ships supporting a landing party of Vietnamese soldiers.

Over the past year, the problem periodically made news headlines then quickly faded as the two countries moved to defuse tensions and reassert their confidence in recent warming bilateral ties, which have included several reciprocal visits by political leaders and top officials, and growing economic links.

Yet the failure to resolve the South China Sea dispute has kept historical antagonisms alive. In April, Beijing complained that a BP-led gas exploration and development project off southern Vietnam was being conducted in China’s territorial waters. Hanoi denied Beijing’s claim, but BP has suspended its exploration in the area, known as block 5.2. China has recently challenged energy exploration in other offshore blocks tendered by Vietnam.

One case in particular involves India’s state-owned ONGC and the offshore blocks 127 and 128, located off Vietnam’s central coast, it was awarded in May 2006. On November 22, the Chinese embassy in New Delhi wrote to ONGC to say that the concession award of the blocks by Vietnam was not valid. To date ONGC has invested US$100 million in its exploration program in the concession areas.

More dramatically, in early July Chinese naval vessels fired on a Vietnamese boat near the Paracel Islands, causing one death and several injuries. While it is has not been uncommon for Chinese naval vessels detaining Vietnamese fishing vessels for straying into contested waters, the use of force was unusual and seemed to represent an escalation in tensions.

Hanoi has so far responded with restraint. While being firm about its territorial claims in official statements, Hanoi declined to take a provocative stand and remained reticent in speaking publicly about meetings it held with Beijing over the issue. But the December demonstrations outside China’s diplomatic missions suggest that Hanoi is now taking a firmer stand.

That has not been lost on Beijing, which publicly chided the Vietnamese for allowing and possibly even encouraging the protests. The Chinese Foreign Ministry said that China was ''highly concerned'' and urged Vietnamese leaders to ''prevent further developments and avoid harming bilateral relations".

''China has indisputable sovereignty over the South China Sea islands,'' ministry spokesman Qin Gang told a regular news conference amid the protests.

What may have finally provoked Hanoi was a policy measure enacted in November by the Chinese State Council administratively incorporating both the Paracel and Spratly Islands into Hainan Island Province. A Chinese administrative outpost on one of the Paracels, Woody Island, was reportedly given the new status as ''county-level city'' of Sansha through the administrative act.

The Vietnamese Foreign Ministry said in apparent response that Vietnam had "adequate historical evidence and sufficient legal basis to proclaim its sovereignty" over both archipelagoes. The ministry also said that the Chinese action had seriously violated Vietnam's sovereignty and did not correspond with the prior common understandings reached by the two countries' leaders. In November, Hanoi also protested against a Chinese military exercise conducted in the Paracels.

Vietnamese Prime Minister Nguyen Tan Dung raised the issues on the sidelines of the Association of Southeast Asian Nations (ASEAN) summit in Singapore in mid-November while meeting Chinese Premier Wen Jiabao. Dung later said the two countries should continue to exchange opinions to find suitable fields and forms of cooperation in disputed and overlapping areas in accordance with international laws and with full consultation and consensus with related parties.

Diplomatic divergence
From Vietnam’s perspective, that would include adherence to the 1982 United Nations Convention on the Law of the Sea and the more recent 2002 ASEAN declaration for the peaceful resolution of conflicts in the South China Sea, where the Philippines, Brunei, Malaysia and Taiwan also have competing claims.

Wen said he agreed that the two sides should implement their top leaders' agreements to cooperate, maintain peace and stability, and ''keep calm in dealing with emerging issues through solutions acceptable by both sides, so as not to affect bilateral relations.'' Wen also reportedly said that he hoped the South China Sea issue could be solved through a joint exploitation approach, while putting to one side maritime boundary claims.

That would draw a box around the disputed areas and allow exploitation of any petroleum or other resources found in the areas through a joint development scheme under which returns would be shared. There is already one tripartite exploration program underway between China’s CNOOC, Vietnam’s PetroVietnam and the Philippine National Oil Company in one eastern region of the Spratlys.

Apart from churning diplomatic waters, the re-emergence of the South China Sea dispute casts an unwelcome cloud over Vietnam’s latest international triumph, given its recent selection to assume one of the two-year non-permanent seats on the United Nations Security Council. Just as accession to the World Trade Organization earlier this year marked a milestone in Vietnam’s efforts to open and integrate globally its economy, so its election to the Security Council underlined the country’s rising stature in the regional and international community.

Over the past year, Hanoi has pushed hard to raise and improve Vietnam’s international profile. Prime Minister Dung, a 58-year-old who assumed office in April 2006, has made a series of diplomatic forays. These include a visit in late January to Rome to meet Pope Benedict in the Vatican to discuss the situation of Vietnam’s several million Catholic adherents. Foreign leaders, ministers and business delegations have also been beating a path to Vietnam’s door, attracted by the country’s strong commercial prospects.

Hanoi has sought to avoid diplomatic controversy. It has reached out in all directions, maintaining ties with old communist allies in Cuba and Russia while building trust with former adversaries in the US, Europe and Australia. Hanoi has also innovatively looked to build ties in South America, especially with Venezuela and Brazil, and has demonstrated a willingness to transcend US-led antagonisms and reach out to North Korea and Iran.

Aside from the South China Sea dispute with China, the only major diplomatic issue facing Vietnam has been recent criticism in the US and European Union about its harsh treatment of pro-democracy dissenters and its ongoing restrictions on religious freedom. Even here, Hanoi has tried to defuse tensions, declaring that human rights are respected in Vietnam and taking certain actions to moderate criticism, such as the occasional release or reduction in sentence of high-profile imprisoned dissidents.

Some contend that Vietnam’s conciliatory approach was part and parcel of its lobbying effort to win a seat at the UN Security Council, where Vietnam will speak for the 53 Asian nation block along with the existing non-permanent Council member Indonesia and permanent member China. Hanoi will soon find itself in more difficult diplomatic terrain, when it will be called upon to make binding decisions and votes that have an impact on relations with countries it has recently cultivated at a bilateral level.

For Dung and his generation of leaders in the Communist Party-led government, the importance and prestige of achieving Security Council membership cannot be underestimated. Dung, who in the American war was a young Viet Cong guerrilla in the south and has been a card-carrying member of the Communist Party since 1967, has watched the full cycle of Vietnam slipping into international isolation in the 1970s and 1980s, tentatively coming in from the cold in the 1990s and now assuming a senior leadership position at the UN’s central decision-making forum.

It wasn’t that long ago that Vietnam was the focus of Security Council criticism, following its invasion of Cambodia in December 1978 and its subsequent 11-year occupation of the neighbouring country. Then Vietnam’s relations with China were a point of global concern after a short but bloody border war between the two sides in 1979, Beijing’s armed response to Hanoi’s military move to oust the Chinese-backed Khmer Rouge regime.

Only after the UN-brokered 1991 Paris Peace Agreement ended Cambodia’s foreign-influenced civil war was Vietnam able to restore normal relations with non-Soviet bloc countries, including China, with which it re-established full diplomatic ties that same year. Now those crucial bilateral relations are strained again, this time over contiguous island chains but similarly with wide-ranging implications for regional stability. As Vietnam prepares to enter the front ranks of the international community through its UN posting, it’s not beyond the realm of possibility that its own bilateral tensions with China could during its term end up on the Security Council’s agenda.

Andrew Symon is a Singapore-based journalist and analyst who regularly visits and writes on Vietnam and the wider Mekong region. He may be reached at:
Andrew.symon@yahoo.com.sg

Tuesday, December 18, 2007

Chevron hesitating in oil exploration in Cambodia due to viable development concept challenge

December 18, 2007
Cambodia Oil Project Invest Decision Likely 1Q '08 -Chevron Executive

BEIJING -(Dow Jones)- Chevron Corp. (CVX) is in the "very late stages" of evaluating oil fields discovered offshore Cambodia in 2004 and may make a decision on their development within three months, a senior executive said Tuesday.

"Probably I would expect some decisions coming out of Chevron in the first quarter or so of 2008 about what our go-forward plans are," said Stephen Green, chief executive of Chevron's South Asia unit.

Oil is distributed over a wide area in the 6,278 square-kilometer Block A, which is around 200 kilometers off the coast of Cambodia, rather than a single pool, Green said.

This adds to the challenge of drawing up a viable development concept for the fields, said Green.

Meetings will take place with the Cambodian government and project partners before a final investment decision is made, he said.

In a recent report, the International Monetary Fund forecast recoverable reserves from the Chevron discoveries at 500 million barrels, with the first of three fields entering production in 2011.

The IMF predicted a $15 billion windfall for the Cambodian government from royalties and taxes over the life of the fields.

By David Winning, Dow Jones Newswires; 8610-65885848; david.winning@ dowjones.com