Deepwater Oil Rig News

Chinese maritime officials on Friday removed an online notice giving the location of a $1-billion deepwater oil rig in the South China Sea two days after issuing it, following a warning from Vietnam about drilling in disputed waters. Vietnam closely tracks the movement of the oil rig, which in mid-2014 caused the worst diplomatic rift between the neighbours in decades, when China parked it for 10 weeks in waters Vietnam considers its own. Annual trade between the communist neighbours exceeds $60 billion but anti-China sentiment is strong in Vietnam, where people are embittered over what many see as a history of Chinese bullying and territorial infringements in the South China Sea.

In mid-2014, rig caused worst breakdown in ties in decades. China's Foreign Ministry said on Wednesday that a $1-billion deepwater oil rig was not drilling in disputed territory in the South China Sea, in response to a warning from Vietnam against such activity. Vietnam closely tracks the movement of the oil rig, which in mid-2014 caused the worst diplomatic breakdown between the neighbours in decades, when China parked it for 10 weeks in waters Vietnam considers its own. This week Vietnam said Beijing had steered the rig, the Haiyang Shiyou 981, into a stretch where jurisdiction is unclear. "According to what is understood, China's Haiyang Shiyou 981 drilling platform is operating in Chinese-controlled waters that are completely undisputed…

China has again deployed the Haiyang Shiyou 981, a semi-submersible oil platform which caused a standoff between Chinese and Vietnamese vessels last year, to the disputed South China Sea region, reports local media. China has brought the deepwater oil rig  near Vietnam’s Hoang Sa (Paracel) Islands. The Chinese Maritime Safety Administration said on its website the oil rig is located at 17 degrees 03.75 minutes north latitude (17-03.75N) and 109 degrees 59.05 minutes east longitude (109-59.05E). According to Reuters the move comes soon after the country indicated it was close to setting up new outposts in the maritime heart of South-East Asia as it nears completion of land reclamation in the South China Sea. The announcement said the rig would explore for oil and gas until August 20.

The top executive of Brazilian state oil giant Petrobras on Tuesday defended his company's acceptance of an industry achievement award despite suffering the loss of the world's largest deepwater oil rig in March. Petrobras president and CEO Philippe Reichstul dedicated the 2001 Offshore Technology Conference Distinguished Award for Companies and Organizations to the 11 workers who died when two explosions rocked the P-36 rig on March 15. Reichstul said Petrobras accepted the award because it recognizes the company's advances in subsea production systems, not the drilling platform proper. The subsea systems were not damaged in the sinking, he said. "We've been amazed by the way everything is impeccable subsea," Reichstul said at the 2001 Offshore Technology Conference (OTC) yesterday.