Vietnam rejects China’s Spratly oil bid accusation
(Reuters)

22 October 2004

HANOI - Vietnam has dismissed China’s protest against state oil firm Petrovietnam inviting bids for oil exploration in the disputed Spratly Islands.


“It should be reaffirmed that these nine blocks are entirely located within Vietnam’s continental shelf and under Vietnam’s sovereignty,” the Foreign Ministry said in a statement published on its Web site at www.mofa.gov.vn.

China, Taiwan and Vietnam claim the whole of the Spratlys -- a cluster of rocks in the South China Sea believed to be rich in oil, gas and minerals -- while Malaysia, Brunei and the Philippines claim portions of the islands.

Last month, Petrovietnam offered the 9 blocks in Phu Khanh basin off central Vietnam with an average 7,000 sq km (2,700 sq mile) per block, estimated to hold oil reserves of up to 1.5 billion barrels.

China denounced the offer on Wednesday, saying it violated China’s sovereignty and would complicate and broaden the dispute over the Spratlys.

China has in past called Vietnam’s plans for commercial flights to the Spratlys “illegal and invalid”. Vietnam, in turn, has expressed concern about an agreement between the Philippines and China to explore for oil and gas there.

Vietnam and China, which have had testy relations for 2,000 years, are both stepping up efforts to develop resources to feed the demands of booming economies.

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