Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Cluster of Chinese vessels spotted near Russian rig off Vietnam - ship monitors

Published 05/10/2023, 09:42 AM
Updated 05/10/2023, 10:40 PM
© Reuters. FILE PHOTO: A China Coast Guard vessel patrols at the disputed Scarborough Shoal April 5, 2017. Picture taken April 5, 2017.    REUTERS/Erik De Castro/File Photo

By Francesco Guarascio

(Reuters) -A Chinese research vessel flanked by coast guard and nearly a dozen boats on Wednesday entered a gas block operated by Russian and Vietnamese state firms, two monitoring groups said, another potential flashpoint in the South China Sea.

It follows a pattern of assertive moves of late by Beijing in its neighbours' exclusive economic zones (EEZ), as it presses its claim to sovereignty over almost the entire South China Sea, testing the United States and its allies at a time of heightened regional tension.

Strong relations between Russia and China are a major factor supporting global stability, Russian Defence Minister Sergei Shoigu said in March, but the two countries have conflicting interests in the South China Sea.

The Chinese research ship, two coast guard and 11 fishing boats entered block 04-03 of Vietsovpetro, a venture between Russia's Zarubezhneft and PetroVietnam, and were still in the area by nightfall, data from two independent vessel monitors reviewed by Reuters showed.

The Chinese group was also close to blocks 05-1 B and 05-1 C, operated by Idemitsu Oil & Gas, a unit of Japan's Idemitsu Kosan, the data showed.

China has been accused of using its coast guard and an armada of fishing boats widely considered militia to intimidate and disrupt energy activities, including off Malaysia, Indonesia, the Philippines and Vietnam. Beijing says it is lawfully operating in its waters.

But the move on Wednesday was "extraordinary", according to Ray Powell, who leads Stanford University's Project Myoushu on the South China Sea, because of "the sheer number of militia and coast guard ships involved".

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"It seems they are sending a message about China's jurisdiction over Vietnam's oil and gas operations," Powell said, adding at least three Vietnamese fisheries surveillance vessels had moved close to the Chinese ships.

'CHINA'S JURISDICTION'

China's foreign ministry said those activities were "normal".

"Chinese fishing and scientific research vessels carry out normal production and work activities in maritime areas under China's jurisdiction," it said.

It made similar remarks on Tuesday after Chinese boats approached an area where the navies of India and Southeast Asian countries held exercises.

Japan's Idemitsu declined to comment. Vietnam's foreign ministry and the other companies involved did not immediately respond to requests for comment.

On Wednesday, the Chinese vessels were about 10 nautical miles (18 km) from the Japanese operating rig and about 20 miles from the Russia-Vietnam rig, according to South China Sea Chronicle Initiative (SCSCI), an independent non-profit.

The Chinese research vessel moved at full speed before entering Vietnam's EEZ but slowed to 4-5 knots, suggesting the ship was conducting a survey there, said SCSCI's Van Pham.

Surveys in a country's EEZ's without prior notification have in previous instances been considered hostile or provocative.

It follows similar incidents in March in two blocks involving Russian firms off Vietnam, which has licensed operations of more than 150 blocks.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.