India, Vietnam agree to expand oil exploration in South China Sea


India and Vietnam have agreed to expand oil exploration in the South China Sea, which is a politically sensitive area because of overlapping territorial claims by regional countries including China.

A total of eight agreements — covering energy, defence and education — were signed during the visit to India by General Secretary of the Communist Party of Vietnam, Nguyen Phu Trong.

However, the one that stood out was the deal to expand oil and gas exploration in the South China Sea.

Vietnam offered India seven oil blocks in the South China Sea for offshore exploration — a move that, analysts say, could affect ties with China.

China and Vietnam have overlapping territorial claims in the South China Sea, along with other countries in the region.

Dr P K Ghosh, a senior fellow at the Observer Research Foundation, said: “It is going to have an impact on the Indo-Chinese relationship only if the blocks are in disputed areas. And as far as I know, it may not be in disputed areas.

“So it’s not going to have too much… but for the Vietnamese, it’ll also help in offsetting the pressure which the Chinese have built up over the past few years.”

Despite the political uncertainty, these agreements are considered common in the energy sector.

Lydia Powell, a senior fellow at the Observer Research Foundation, said: “I wouldn’t say this is an exception or anything like that. Many oil prospects around the world are disputed, and it’s very common to have a memorandum of understanding to explore. So it’s not out of the way completely.”

Other agreements signed by Mr Trong and Indian Prime Minister Manmohan Singh included cooperation on transnational crime, science and technology and trade.

From the level of engagement seen between Dr Singh and Mr Trong — including the offer of a US$100 million line of credit for defence purchases — it appears that Vietnam is, as Prime Minister Singh said, an important part of India’s “Look East” policy.





Source : Channel News Asia | November 21, 2013


About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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