China again warns foreign oil firms on South China Sea exploration

Post on: 2011-11-02 By: admin

BEIJING, Oct 31 (Reuters) - China on Monday warned foreign
energy companies against exploration in the disputed South China
Sea after U.S. oil giant Exxon Mobil Corp said it had
discovered hydrocarbons in August off central Vietnam, in an
area also claimed by China.
The potentially significant gas discovery was made off the
coast of Danang city, bringing a territorial row over the
resource-rich South China Sea back into focus.
Chinese Foreign Ministry spokesman Hong Lei reiterated at a
regular briefing that "China has indisputable sovereignty over
the Spratly Islands and adjacent waters," referring to the South
China Sea.
"We hope foreign companies do not get involved in disputed
waters for oil and gas exploration and development. This
position has been consistent," Hong said, when asked whether
China plans to ask Exxon Mobil to withdraw from its oil and gas
deal with Vietnam.
He did not elaborate, nor single out Exxon Mobil by name.
Exxon Mobil has a licence from the Vietnamese government to
explore blocks 117, 118 and 119 off the Danang coast, falling
within what Vietnam claims is its 200-mile exclusive economic
zone under international maritime law, the Financial Times
reported last week.
But the blocks also fall within China's vast claim to almost
the entire South China Sea, also claimed in part by Brunei,
Malaysia, the Philippines and Taiwan.
The sea and areas such as the Spratly Islands and other
atolls are believed to have rich deposits of oil and gas and is
also a rich fishing ground.
One of China's most popular newspapers, the Global Times,
cautioned last week that nations involved in territorial
disputes in the waters should "mentally prepare for the sounds
of cannons" if they remain at loggerheads with Beijing.
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