1. What is Phu Kanh basin?
2. Why is it in news?
3. OVL and S.China oil exploration
4. What is India’s stand on South China?
5. ARF sumit
6. Interview Questions

What is Phu Kanh basin?

• It’s a potential crude oil source, in the South coast of Vietnam.
• In 2006, Vietnam had awarded two exploration blocks – 127 and 128 – in Phu Kanh basin to ONGC Videsh.

South China Sea, where both China and Vietnaam are fighting over control of crude oil resources.

Why is it in news?

• Vietnaam says all these blocks fall in our Exclusive Economic Zone and are in accordance with the United Nations Convention on the Law of Sea (UNCLOS).
• But China says “no, these blocks belong to us.” And China has started a process to auction these oil fields.

OVL and S.China oil exploration

• OVL = ONGC Videsh Ltd (OVL).
• Petrovietnam = State oil co of Vietnaam. It had contracted OVL to explore the oil field in South China sea. (but china had been opposing it since the beginning)
• Anyways, few months back, OVL had decided to exit because its surveys had not shown much promise for any big deposits of crude oil. Soon after, Petrovietnam had approached OVL with fresh terms and conditions, which allowed OVL two more years for exploration.
• The offer, which is still under discussions.
• Relations between the ONGC and PetroVietnam date back to the 1980s, and ONGC is not the only multinational company interested in tapping offshore exploration opportunities in Vietnam, two facts that make China very nervous and hence to ward them off, China has started the process to sell these blocks. Thus creating the crisis.

What is India’s stand on South China?

India supports freedom of navigation and access to (natural) resources in accordance with principles of international law. These principles should be respected by all.

ARF sumit

You already know what is ARF, (if not, then click me)
In the recent ARF sumit, Pakistan went along with China and said “yes these are historical claims that ought to be decided bilaterally [between China and Vietnaam] and not be subjugated to the international law of sea.

Mock Questions for GS paper II

1. Phu Kahn Basin (2m)
2. Spratly Islands a (2m)
3. JIMEX-12 (2m)
4. Write a note on exclusive economic zone (EEZ) and United Nations Convention on the Law of Sea (UNCLOS) 10m

Interview Questions

1. What do you know about South China sea dispute?
2. What are the policy options available for India regarding South China Sea dispute?
3. Is it worth annoying the Beijing for an area where ONGC survey says “not really big supply of crude oil”?  Should India really venture in that troubled water?