Despite Chinese objections to India’s deals with Vietnam for oil exploration in the South China Sea, which Beijing claims in full, India and Vietnam on Wednesday sealed an oil exploration accord in the Vietnamese waters of the sea.
At the end of talks between Prime Minister Manmohan Singh and the visiting Vietnamese President, Truong Tan Sang on Wednesday, India?s state-owned Oil and Natural Gas Corporation?s (ONGC?s) overseas arm, ONGC Videsh Ltd (OVL), inked a three-year agreement with PetroVietnam for cooperation in the oil and gas sector.
In a press conference with the Vietnamese leader, Singh said, ??A strong India-Vietnam relationship is a factor of peace, stability and development in the Asia-Pacific region. It stands on its own merits. The president?s visit has given a new thrust and direction to this partnership.?? India has defended the oil exploration deal, saying its cooperation with Vietnam is in accordance with international laws, besides underlining the need for freedom of navigation in the South China Sea.
According to Arun Goel, joint secretary (South) in the external affairs ministry, the agreement would cover the exchange of information related to the petroleum industry, new investments, and the expansion and operation of existing oil and gas efforts, including refining, transportation and supply in Vietnam, India and other countries.
The cooperation between OVL and PetroVietnam dates back to the 1980s. A production sharing contract was inked between Hydrocarbon India Ltd (renamed later as OVL) and PetroVietnam in May 1988 for Block 06.1, which contributes about 50 % of the gas requirement of the domestic sector. In 2006, OVL also secured the rights to explore for oil and gas in offshore Blocks 127 and 128 in the Phu Kanh basin in Vietnam.
Sang’s visit to India follows recent tension between China and India over India-Vietnam oil exploration projects in the South China Sea, over which China claims it has sole rights.
The prime minister also underlined that India and Vietnam were maritime neighbours in the region and would work together to confront security challenges from terrorism, piracy and natural disasters.