BEIJING--A Chinese oil company said it is relocating a
deep-water drilling rig that had operated in contested waters of
the South China Sea, causing severe strains in relations between
China and Vietnam.
China Oilfield Services Ltd., a unit of state-owned China
National Offshore Oil Corp., said in a statement that its
deep-water HYSY 981 drilling rig had completed exploration and
drilling operations off Triton Island, or Zhongjian Island in
Chinese. The island is part of the Paracel Islands chain, claimed
by China and Vietnam.
The rig's operator, known as COSL, couldn't be reached for
comment.
China's Foreign Ministry reiterated Wednesday that Chinese
companies were within their rights to undertake work around the
Paracel Islands. It said it opposed interference by Vietnam and had
taken "necessary measures to safeguard the safety of operations" by
COSL.
Vietnam protested Chinese drilling in the area after it began in
early May and has sent coast guard vessels to confront the rig.
Dozens of Chinese and Vietnamese maritime vessels had massed near
the disputed rig, with each side claiming its ships had been
violently rammed by the other's.
China's decision to deploy a rig to the contested waters drew
criticism from Washington, which called it provocative. The episode
touched off deadly anti-Chinese riots in Vietnam in May.
A Vietnam Coast Guard official confirmed that the oil rig was
being moved.
"It started moving at 2100 [Tuesday] night and is moving toward
China's Hainan Island," Rear Admiral Ngo Ngoc Thu, Vice Commander
of Vietnam Coast Guard said.
Mr. Thu said that all the Chinese vessels in the area are moving
with the rig. He said Vietnam was keeping its vessels at the site
and is closely watching the oil rig's movement.
China National Petroleum Corp., the country's largest oil
company by production, controls the disputed exploration area.
COSL said the rig would move to near Hainan island to continue
exploration there and said it is planning to evaluate data
collected during drilling at the contested site to consider its
next phase of work.
Trong Khanh Vu contributed to this article.
Write to Brian Spegele at brian.spegele@wsj.com
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