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China and Vietnam in new spat over oil-rich waters

A Chinese drilling rig in the South China Sea, which has triggered protests in Vietnam, is the latest attempt to claim the area's oil and gas reserves

IT LOOKS like an oil rig, but it may really be a beachhead. A Chinese drilling platform out at sea, in an area also , is the latest issue in a decades-long dispute over the South China Sea and its oil and gas resources.

On 1 May, China installed its Haiyang Shiyou 981 rig near the Paracel Islands, in the northern part of the South China Sea. Since then , and China has evacuated thousands of its citizens from Vietnam after violent anti-Chinese protests.

The US Energy Information Administration estimates that . 鈥淚t鈥檚 pretty plausible there鈥檚 oil and gas in a lot of those areas,鈥 says , an oil exploration expert at CSIRO, Australia鈥檚 national science agency, in Perth.

China lays claim to a swathe of the South China Sea. For its part, Vietnam says it has effectively ruled the Paracel Islands, and the Spratly Islands to the south, since the 17th century.

The dispute could be settled by the in Hamburg, Germany, but only if both China and Vietnam agree to participate.

Topics: Energy and fuels / Environment