India, Vietnam to sign deal for oil exploration in South China Sea despite protest by China

In a move that is likely to irk China, India and Vietnam will sign an agreement here tomorrow for oil exploration in South China Sea with the visiting Vietnamese Prime Minister Nguyen Tan Dung declaring that Indian ships would be allowed into the area despite Chinese protestations. According to sources, India has decided to accept 2-3 Vietnamese oil blocks in the South China Sea based on the techno-commercial feasibility report by the ONGC Videsh Limited and an agreement in this regard would be inked tomorrow after the talks. In addition to the current three oil blocks, Vietnam had offered India five oil blocks and the ONGC Videsh Limited was looking at them in terms of their feasibility.

Recently, Vietnam had renewed India's lease of two oil blocks in the South China Sea for another year. China and Vietnam have an acrimonious relationship due to their standoff over the South China Sea, a major source of hydrocarbons. China has been objecting to India's oil exploration projects in the disputed waters. 

Meanwhile, ahead of his talks with Modi, the Vietnamese Prime Minister pitched for India's "active support" to peacefully resolve all disputes and sought its greater linkages across the region. During an interview with PTI, he said "Vietnam supports India to increase multi-dimensional linkages with South East Asia. For the purpose of friendship and exchange, we have and will continue to allow ships from other countries, including India, to visit Vietnam. "Vietnam hopes that India, with its increasingly important role, will make positive and responsible contributions to the maintenance of peace and stability and the region and the world," he said. 

The remarks by the Vietnamese PM may not go down well with China which had last month asked Indian naval assault vessel, INS Airavat which was on a routine call at a Vietnam port and was travelling in open international waters in the South China Sea, to leave the waters terming them as "Chinese waters".

On the dispute in the South China Sea, he said "the proper settlement of disputes in the East Sea for peace, stability, maritime security and safety and freedom of navigation in the region is in the common interest of countries in the region and beyond. In that spirit, Vietnam hopes that India, as a major power in the region and the world, will actively support the parties concerned to peacefully resolve all disputes, refrain from actions that may further complicate the situation, thus contributing to the maintenance of peace, stability, maritime security and safety and freedom of navigation in the East Sea."

Territorial disputes in the South China Sea involve both island and maritime claims among seven sovereign states within the region -Brunei, the People's Republic of China, Taiwan, Malaysia, the Philippines, and Vietnam Making clear its position on the East Sea issue, Tan said Vietnam and other ASEAN countries have consistently underlined the importance of complying with international law, the 1982 UNCLOS and maintaining peace, stability, maritime security and safety and freedom of navigation in the East Sea.

Asked if Vietnam would be able to ensure the interests of foreign oil and gas companies currently active in the East Sea, he said "Vietnam welcomes and is committed to creating every favourable condition for normal economic cooperation activities between Vietnamese oil and gas companies and their foreign partners, including Indian companies, in the Exclusive Economic Zone and continental shelf of Vietnam in keeping with the Vietnamese law and international law, particularly the 1982 UNCLOS."

India and Vietnam will also ink an MoU on the Nalanda University tomorrow. Tan, who arrived in Bihar today, visited Bodhgaya and pitched for direct flights from Hanoi to Bodhgaya as also Visa-on-Arrival facility. 

On India-Vietnam deciding to further military cooperation and if it could be considered to be aimed at China, Tan said "the foreign policy of Vietnam is consistent. We do not join any military alliance against another country." Asked whether Vietnam would like to settle the dispute with China bilaterally or will it act based on international law, the Vietnamese Prime Minister said his country always holds in high regard the traditional friendship and comprehensive cooperation with China and indicated that it would like the dispute to be settled in compliance with international law.

"However, Vietnam is determined to protect its sovereignty over the Hoang Sa and Truong Sa archipelagos as well as its sovereign rights and jurisdiction rights in these waters. With the tradition of amity and consistent foreign policy, Vietnam always perseveres with resolving all disputes through peaceful means, without resort to the use or threat of force, on the basis of exercising self-constraints and refraining from actions that may further complicate the situation, in compliance with international law, the 1982 UNCLOS, the Declaration on the Conduct of Parties in the South China Sea (DOC) and efforts toward a Code of Conduct (COC)," he said.

He said Vietnam always takes a proactive approach in its conduct in keeping with international law and takes advantage of every opportunity to reduce tension, restore trust, promote friendly cooperation, pursue dialogue to seek a fundamental and long-term solution to the East China Sea issue. Tan's visit is seen by the Indian side as an opportunity to increase economic engagement.