India finds oil drilling off Vietnam a losing proposition

Discussion in 'Foreign Relations' started by nrj, May 11, 2012.

  1. nrj

    nrj Stars and Ambassadors Stars and Ambassadors

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    India is likely to withdraw from an oil block in the South China Sea after hydrocarbons did now show up in an exploratory well, said government sources. Officials here have conveyed to Vietnam plans to terminate operations on commercial considerations, said the sources who knew about the talks.

    The block has been at the centre of much diplomatic bad blood among China, Vietnam and India that included demarches, summons and affirmations of sovereignty over the same patch of sea.

    The sources said the move to shut operations, that should relieve Beijing which was locked in another maritime dispute in the same sea with the Philippines, had been conveyed to South Block and the Petroleum Ministry but a decision would be considered final only when the state-owned Oil and Natural Gas Commission Videsh Limited (OVL) approached PetroVietnam for permission to stop operations. That stage had not been reached, they said, while Indian officials said they were not sure whether OVL had written to the Indian mission in Hanoi and asked it to formally convey the request to Vietnam.

    Vietnamese diplomats expressed disappointment considering that Hanoi had stood up to Beijing for the past six years whenever it disputed the contract given to India for oil exploration in the Phu Khanh Basin. They wondered whether this was due to pressure from China which was “always against any foreign company” conducting oil operations in the South China Sea.

    Indian officials insisted block 128 had low prospects of producing hydrocarbons, as was the case with the adjacent block 127, which OVL returned to Vietnam three years ago. But the two blocks have been part of a wider conflict in the maritime domain on which India released a statement.

    Commenting on the stand-off between China and the Philippines in another part of the South China Sea, a Foreign Office statement urged both countries to exercise restraint and resolve the issue diplomatically and according to the principles of international law. While the dispute over India conducting drilling operations in the South China Sea did not come to a stand-off between vessels, India and China recently exchanged sharp words on the issue. A Holland-based company surveying this area on behalf of OVL was even summoned by the Chinese Embassy in The Hague and told to stop operations. But backed by Vietnam, OVL persuaded it to complete the survey work.

    Officials here said India would continue to remain engaged with Hanoi, viz. continuing operations and expansion of activity in the Nam Con Son basin that OVL was awarded as a goodwill gesture to India, which was allowed to sell part of the stake to other oil producers when it did not have enough foreign exchange to pay for all the three blocks.

    Today, India and Russia are poised to join Vietnam in becoming this basin's mid and down stream segments such as oil pipelines and power plants. While India appears to have made up its mind to withdraw on “commercial considerations” from a multi-nation dispute over sovereignty issues in the South China Sea, the emerging regional hotspot is likely to be at the centre of diplomatic exchanges at next month's Shangri-La dialogue.

    The Hindu : News / National : India finds oil drilling off Vietnam a losing proposition
     
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  3. trackwhack

    trackwhack Tihar Jail Banned

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    watch out for the chicoms. go go congress.
     
  4. Sunder singh

    Sunder singh Regular Member

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    weak congreses
     
  5. Daredevil

    Daredevil On Vacation! Administrator

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    Take this article with pinch of salt as it comes from CCP mouth piece of India - The Hindu
     
    maomao, LurkerBaba and hit&run like this.
  6. Yusuf

    Yusuf GUARDIAN Administrator

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    If there is no economic sense, then it's obvious India will move out. It does not mean India is chickening out. If there are other prospects in the area, India will stay put. After all the noises India has made in the last few months, I really doubt any withdrawal will be made due to Chinis threats.
     
  7. Adux

    Adux Senior Member Senior Member

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    Will we find out sometime later that hydrocarbons came to seen on some other non-indian entity's research. I feel India is doing this on purpose
     
  8. Yusuf

    Yusuf GUARDIAN Administrator

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    It's entirely possible that India knew there will be nothing out there but went there on purpose to needle the Chinis.
     
  9. Tolaha

    Tolaha Senior Member Senior Member

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    So what if there is no oil... India must drill! India probably might not be digging in the South China Sea for the oil anyway!
     
  10. pmaitra

    pmaitra Moderator Moderator

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    Several possibilities:
    • There simply isn't enough oil for any enterprise to be economically feasible.
    • India wants to make other contesting countries lose interest in that block and is making false declarations to bide time so that the Indian Navy acquires more equipment and vessels and will resume full scale oil exploitation after 2 years or so.
    • India knew this all throughout but went there nonetheless to make a bold statement to PRC.
    • India does not want to enter into a conflict with PRC and there is oil but wants to withdraw; and is saying this to save face.
     
  11. hit&run

    hit&run Elite Member Elite Member

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    India can not loose its credibility to Vietnam by saying there is no good amount of HCs in that block. Vietnam can drill there again to reconfirm it later on. If the is no profitable amount then definitely there isn't. If the initial drilling was done by a private organization on Indian behalf then their report should be trust worthy.

    The so called conflict with PRC could have already happened if PRC dared even on initial drilling. Once we are there, we are there. The challenge is/was already tossed.

    I agree with DD that Commie leftist The Hindu has again done its word crafting as usual.
     
  12. utubekhiladi

    utubekhiladi The Preacher Elite Member

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    this is :bs:

    congress is again pussy footing or falling under Chinese pressure.. or every one took money from chinese
     
  13. utubekhiladi

    utubekhiladi The Preacher Elite Member

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    now later, non-indian companies will find lots of HC's in the very same block. :bs:
     
  14. hit&run

    hit&run Elite Member Elite Member

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    Lets do not assume too much on this. If they were to chicken out they wouldn't have gone into that place. The reports are clearly suggesting that irrespective of negative assessment on HCs GoI is prolonging its presence there.
     
  15. Vishwarupa

    Vishwarupa Senior Member Senior Member

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    India likely to withdraw from South China Sea

    India is likely to withdraw from an oil block in the South China Sea after hydrocarbons did not show up in an exploratory well, said government sources here on Thursday. Officials have conveyed to Vietnam plans to terminate operations on commercial considerations, said the sources who knew about the talks.

    The block has been at the centre of much diplomatic bad blood among China, Vietnam and India that included demarches, summons and affirmations of sovereignty over the same patch of sea.

    The sources said the move to shut operations, that should relieve Beijing which was locked in another maritime dispute in the same sea with the Philippines, had been conveyed to South Block and the Union Petroleum Ministry but a decision would be considered final only when the State-owned Oil and Natural Gas Commission Videsh Limited (OVL) approached PetroVietnam for permission to stop operations. That stage had not been reached, they said, while Indian officials said they were not sure whether OVL had written to the Indian mission in Hanoi and asked it to formally convey the request to Vietnam.

    Vietnamese diplomats expressed disappointment considering that Hanoi had stood up to Beijing for the past six years whenever it disputed the contract given to India for oil exploration in the Phu Khanh Basin. They wondered whether this was due to pressure from China which was “always against any foreign company” conducting oil operations in the South China Sea.

    Indian officials insisted block 128 had low prospects of producing hydrocarbons, as was the case with the adjacent block 127, which OVL returned to Vietnam three years ago. But the two blocks have been part of a wider conflict in the maritime domain on which India released a statement.

    Commenting on the stand-off between China and the Philippines in another part of the South China Sea, a Foreign Office statement urged both countries to exercise restraint and resolve the issue diplomatically in keeping with the principles of international law. While the dispute over India conducting drilling operations in the South China Sea did not come to a stand-off between vessels, India and China recently exchanged sharp words on the issue. A Holland-based company surveying this area on behalf of OVL was even summoned by the Chinese Embassy in The Hague and told to stop operations. But backed by Vietnam, OVL persuaded it to complete the survey work. Officials here said India would continue to remain engaged with Hanoi, viz.

    :facepalm:
     
  16. Galaxy

    Galaxy Elite Member Elite Member

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    ^^

    Why you didn't posted whole article ? You missed last two important paragraphs.


    The Hindu : News / National : India finds oil drilling off Vietnam a losing proposition
     
    Last edited: May 11, 2012
  17. amitkriit

    amitkriit Senior Member Senior Member

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    Economics doesn't always dictate geo-politics. India's entry into South China sea is a tit-for-tat against the String of Perl strategy.
     
  18. amoy

    amoy Senior Member Senior Member

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    OVL needs such goodies to get jobs done
    [​IMG]

    And OVL has outsourced survey job ?

     
    Last edited: May 11, 2012
  19. Avenger

    Avenger Tihar Jail Banned

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    India Company decided to withdraw from the South China Sea

    India Company decided to withdraw from the South China Sea oil development may be due to Chinese pressure
    Data Figure: Vietnamese offshore oil drilling platform.

    India a number of media reports on the 12th, said India’s state oil company has decided to withdraw due to “technical reasons”, and Vietnamese cooperation has been the exploration of China’s opposition to the South China Sea No. 128 oil and gas blocks. In this regard, “Hindustan Times” commented that India, this move will help relieve the already strained diplomatic nerves between India; The Press Trust of India claimed, which will affect India in the region strategic presence in New Delhi only watched the influence of China and constantly enhance.

    According to the Hindustan Times reported on the 12th, the Indian Foreign Ministry has informed the Ministry of Petroleum, India’s state-owned oil companies decided to continue or exit the exploration of the South China Sea No. 128 oil and gas blocks can be based on “technical reasons”. In mid-April, the Indian media reported that the Indian oil and gas company sent a letter to the Ministry of Oil, said that this block of sea-bed is hard, many exploration efforts are unsuccessful, continue to explore more harm than good. 128 oil and gas blocks involved in the dispute over sovereignty of China and Vietnam, Indian Oil Corporation in 2009, took over when he triggered the Sino-Indian diplomatic dispute, the Indian Ministry of Petroleum withdrew to consult the Department of State. The article quoted a senior official of the Indian Ministry of Petroleum said: “We have received the reply of the Department of State, now allows the oil and gas companies to their own decisions based on technical and business reasons to continue or exit the exploration of the South China Sea No. 128 oil and gas blocks. India Newspaper Trust, said on the 11th, the end of March 2011, the Indian oil and gas company has invested in 128 oil and gas blocks $ 46 million, but the sea-bed is hard, exploration activities can not be normal. In November last year, the Indian Ministry of Foreign Affairs and the Ministry of Oil has held a joint meeting to explore the block exploration in the South China Sea.

    “The Hindu”, said the Vietnamese diplomat expressed disappointment at this decision of India, they questioned New Delhi whether this is due to pressure from China. “Although New Delhi, said a purely commercial nature of exploration activities in the South China Sea, but Beijing do not think it concerns China’s sovereignty, resulting in both India and China last year, the deterioration of relations.” Reported that the Indian oil and gas company entrusted the region to carry out investigation a Dutch company and even by the warnings of the Chinese Embassy in charge, asking them to stop related activities, “but in the support of the Vietnam oil and gas company in India to persuade it to complete investigations”.

    “Hindustan Times” said, now, Indian companies to exit caused by China’s opposition to the 127 and 128 block of exploration, India may be temporarily stopped with China in the South China Sea dispute. However, India and Vietnam last year, has decided to strengthen energy cooperation, the South China Sea issue on the battle may well be later reproduce. “Voice of Russia” on the 12th commented that between China and India, despite the many outstanding contentious issues, but both try to avoid direct confrontation.

    for Vietnam to draw Russia into the South China Sea oil production, the United States, “World Net Daily on the 12th, said China is to put pressure on Russia to its withdrawal in the business of the South China Sea.

    India Company decided to withdraw from the South China Sea oil development may be due to Chinese pressure « Military of China, force comment.
     
  20. satish007

    satish007 Senior Member Senior Member

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    India came, and China scared, so China and Vietname compromise. not India business now. Indian's oil exploration skill is good too, why nobody post somethign about it.
     
  21. ajtr

    ajtr Veteran Member Veteran Member

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    I always knew that India will be the first one to runaway from SCS when push comes to shove and leave vietnam in lurch as india did same in case of iran in later half of last decade to get nuke agreement from usa.but india got nothing.-today iran doubts india's sincerity as friend and nuke agreement is in suspended animation without ENR tech.
     

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