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Vietnam renews India oil deal in tense South China Sea


Vietnam has extended an Indian oil concession in the South China Sea and begun drilling in another area it disputes with China in moves that could heighten tensions over who owns what in the vital maritime region.

The moves come at a delicate time in Beijing's relations with Vietnam, which claims parts of the sea, and India, which recently sent warships to monitor the Malacca Straits, through which most of China's energy supplies and trade passes.

Vietnam granted Indian oil firm ONGC Videsh a two-year extension to explore oil block 128 in a letter that arrived earlier this week, the state-run company's managing director Narendra K. Verma told Reuters.

Part of that block is in the U-shaped 'nine-dash line' which marks the vast area that China claims in the sea, a route for more than $5 trillion in trade each year in which the Philippines, Brunei, Malaysia and Taiwan also have claims.

A senior official of ONGC Videsh, who asked not to be named because of the sensitivity of the matter, said interest in the block was strategic rather than commercial, given that oil development there was seen as high-risk with only moderate potential.

"Vietnam also wants us to be there because of China's interventions in the South China Sea," the official said.

Vietnam's state-run PetroVietnam declined to comment on the concession, which was first granted to India in 2006 but had been due to expire in mid-June.

Conflicting territorial claims over the sea stretch back many decades but have intensified in recent years as China and its rivals have reinforced their positions on the rocks and reefs they hold.

Far to the south of block 128, drilling has begun in a block owned jointly by Vietnam's state oil firm, Spain's Repsol and Mubadala Development Co [MUDEV.UL] of the United Arab Emirates.

Deepsea Metro I, operated by Odfjell Drilling Ltd., has been drilling in the region since the middle of last month on behalf of Spain's Repsol SA, which also has rights to neighboring block 07/03, Odfjell said.

Odfjell declined to comment on the specific location of its vessel, but shipping data from Thomson Reuters Eikon showed it was in oil block 136/3, which also overlaps China's claims.

Odfjell's Eirik Knudsen, V‎ice President for Corporate Finance and Investor Relations, referred further queries to Repsol, which declined to comment. PetroVietnam made no comment.



COMPETING MARITIME CLAIMS

When asked about the activity, Chinese foreign ministry spokesman Geng Shuang said China opposes anyone "carrying out unilateral, illegal oil and gas activities in waters China has jurisdiction over".

"We hope the relevant country can act on the basis of maintaining regional peace and stability and not do anything to complicate the situation," he told a briefing in Beijing.

Chinese General Fan Changlong cut short a visit to Vietnam and a friendship meeting at the China-Vietnam border was canceled around the time the drilling began.

The centuries-old mistrust between China and Vietnam is nowhere more evident than in their competing maritime claims, despite their shared communist ideology and growing trade.

Asked about the most recent drilling, Vietnamese officials said their Chinese counterparts have started raising concerns about cooperation with both Repsol and ExxonMobil Corp. of the United States, which is developing the $10 billion "Blue Whale" gas concession off central Vietnam.

They said Chinese officials also expressed concern at Vietnam's evolving security relationships with the United States and Japan, both of which have offered moral support for its South China Sea claims and help for Vietnam's coastguard.

Tensions with China were being contained, however, and had not yet reached crisis proportions, they said.

"We know they are unhappy again, but we are resisting the pressure – it is a traditional part of our relations with Beijing," one official said privately. "Other parts of the relationship remain strong."

Underlining the relationship between India and Vietnam, Vietnamese deputy prime minister Pham Binh Minh told a forum in New Delhi this week that India was welcome to play a bigger role in Southeast Asia - and specifically the South China Sea.

Hanoi's growing defense and commercial ties with India are part of its strategy of seeking many partnerships with big powers while avoiding formal military alliances.

The pace has picked up since Indian Prime Minister Narendra Modi's administration took office in 2014 and sought to push back against China's expanding presence in South Asia by raising its diplomatic and military engagement in Southeast Asia.

India is providing naval patrol boats, satellite cover to monitor Vietnam's waters and training for its submarines and fighter pilots - more military support than it is giving to any other Southeast Asian country.

On the agenda are transfers of naval vessels and missiles under a $500 million defense credit line announced last year.

Next week, the navies of India, the United States and Japan will hold their largest joint exercises in the Bay of Bengal.

https://www.reuters.com/article/us-southchinasea-vietnam-idUSKBN19R25P
 
Vietnam Goes Bold In the South China Sea

https://www.the-american-interest.com/2017/07/06/vietnam-goes-bold-south-china-sea/

Vietnam continues to be China’s feistiest rival in the South China Sea. Earlier this week, BBC News broke the story that Hanoi had allowed oil drilling to proceed in the South China Sea, setting off a diplomatic row with China:

An oil industry consultant told the BBC that a drilling ship on contract to international firm Talisman-Vietnam was working off Vietnam’s south-east coast.

This appears to be why a senior Chinese general cut short an official visit to Vietnam last month.

According to Ian Cross, of Singapore-based Moyes & Co, the drillship Deepsea Metro I, began to drill in an area of sea about 400km (250 miles) off the Vietnamese coast on 21 June. […]

The piece of seabed in question is known as Block 136-03 by Vietnam, but China calls it Wan-an Bei 21 and has leased out the same area to a different company.

Block 136-03 is not the only site where Vietnam is pushing China’s buttons. Reuters reports today that Hanoi has given an Indian company the go-ahead to proceed with oil exploration in block 128, another area of contention:

Vietnam granted Indian oil firm ONGC Videsh a two-year extension to explore oil block 128 in a letter that arrived earlier this week, the state-run company’s managing director Narendra K. Verma told Reuters. […]

A senior official of ONGC Videsh … said interest in the block was strategic rather than commercial, given that oil development there was seen as high-risk with only moderate potential.

“Vietnam also wants us to be there because of China’s interventions in the South China Sea,” the official said.

The timing here does not seem accidental. Vietnam renewed the Indian oil deal just after Vietnam’s Foreign Minister concluded a four-day visit to India, where he talked up greater security and economic cooperation. The same week, India’s External Affairs Minister was singing to Vietnam’s tune at an ASEAN event, insisting that countries uphold “freedom of navigation and respect for international law” in the South China Sea, while forecasting a greater Indian role in cooperating with ASEAN. Those signals add more data points to a growing picture of Indian-Vietnamese alignment as both countries cooperate to turn up the heat on China.

To top it all off, Vietnam also kicked off joint drills with the U.S. Navy yesterday. Those exercises were previously scheduled, but they came just days after an American warship sailed by a China-claimed islet in the South China Sea, provoking furious denunciations from Beijing. Taken together with recent promises of U.S.-Vietnamese intelligence sharing, China may swiftly conclude that the U.S. is about to more aggressively counter China’s claims and support Vietnam.

Until recently, China has enjoyed a substantially free hand in the South China Sea, making major progress without sufficient pushback. As Vietnam acts more boldly to defy China’s claims, and larger powers like the U.S. and India step up their commitments, could that be about to change?
 
http://timesofindia.indiatimes.com/...ense-south-china-sea/articleshow/59478405.cms

'Strategic move': Vietnam renews India oil deal in tense South China Sea

================
Vietnamese brothers, sisters and mutual friends, once we done exposing hollowness of a certain bully barking threats (mostly through its media mouthpieces) in Sikkim/Bhutan border area....there will be more credibility for expanding of India-Vietnam bilateral ties given bluffs would be called by then and cards shown. More needs to be operationalised.

Hope you all gonna watch Malabar naval exercises (starting tomorrow and lasts 10 days) too. Hope sometime in the future Vietnam navy is a participant.

Good luck to the Indian brothers with the Sikkim/Bhutan border issues. India will prevail. :tup:
 
Interesting article since it says "Fulfilled the contract to deliver 64 T-90MS tanks to Vietnam".

If this is correct, then Vietnam already received all the tanks. It also says T-90MS, not S. I think that's probably a mistake.

Russia Exported Hundreds of T-90 Tanks in 2016
Buyers were Iraq, Vietnam and Kuwait. Egypt and India will probably follow

RI Staff
17 hours ago | 1894 24

http://russia-insider.com/en/military/russia-exported-hundreds-t-90-tanks-2016/ri20279



According to its recently published report Russia's biggest tank-maker Uralvagonzavod in 2016:

  • Fulfilled the contract to deliver 64 T-90MS tanks to Vietnam
  • Finished delivering 146 T-90MS tanks to Kuwait
  • Delivered the first batch of 73 T-90S tanks to Iraq
Of these the sales made to Kuwait and Iraq are the most interesting.

Kuwait follows a broadly pro-American foreign policy orientation, but when it comes to buying military hardware often gets it from Eastern Europe bloc countries. Along with US-made M1 Abrams tanks and British-made Warrior infantry carriers it also operates hundreds of Russian-made BMP-3 armored transporters and Yugoslav-made M-84 tanks (licensed-built T-72s).

Since it invaded it in 2003 the US has transferred vast quantities of US-made weaponry to Iraq as aid, but when it comes to spending its own money on arms Baghdad is increasingly likely to buy Russian rather than American. In a high-profile transfer in 2014 Iraq bought Russian Su-25 ground attack planes after Obama delayed transfers of American-built F-16s.

A T-90MS tank goes for about $4.5 million, while the T-90S is somewhat cheaper.

Uralvagonzavod is also close to a deal to export up to 500 T-90MS tanks to India, and upgrade 1,000 of its T-72s. As well as another deal to help Egypt assemble 400-500 T-90S tanks at home.
 
Interesting article since it says "Fulfilled the contract to deliver 64 T-90MS tanks to Vietnam".

If this is correct, then Vietnam already received all the tanks. It also says T-90MS, not S. I think that's probably a mistake.

Russia Exported Hundreds of T-90 Tanks in 2016
Buyers were Iraq, Vietnam and Kuwait. Egypt and India will probably follow

RI Staff
17 hours ago | 1894 24

http://russia-insider.com/en/military/russia-exported-hundreds-t-90-tanks-2016/ri20279



According to its recently published report Russia's biggest tank-maker Uralvagonzavod in 2016:

  • Fulfilled the contract to deliver 64 T-90MS tanks to Vietnam
  • Finished delivering 146 T-90MS tanks to Kuwait
  • Delivered the first batch of 73 T-90S tanks to Iraq
Of these the sales made to Kuwait and Iraq are the most interesting.

Kuwait follows a broadly pro-American foreign policy orientation, but when it comes to buying military hardware often gets it from Eastern Europe bloc countries. Along with US-made M1 Abrams tanks and British-made Warrior infantry carriers it also operates hundreds of Russian-made BMP-3 armored transporters and Yugoslav-made M-84 tanks (licensed-built T-72s).

Since it invaded it in 2003 the US has transferred vast quantities of US-made weaponry to Iraq as aid, but when it comes to spending its own money on arms Baghdad is increasingly likely to buy Russian rather than American. In a high-profile transfer in 2014 Iraq bought Russian Su-25 ground attack planes after Obama delayed transfers of American-built F-16s.

A T-90MS tank goes for about $4.5 million, while the T-90S is somewhat cheaper.

Uralvagonzavod is also close to a deal to export up to 500 T-90MS tanks to India, and upgrade 1,000 of its T-72s. As well as another deal to help Egypt assemble 400-500 T-90S tanks at home.

How many roughly is Vietnam looking to acquire of this class of tank longer term (64 doesnt sound enough to me)...and is Vietnam looking to assemble locally?
 
How many roughly is Vietnam looking to acquire of this class of tank longer term (64 doesnt sound enough to me)...and is Vietnam looking to assemble locally?

Nobody has any clue about that, everything is done in secrecy, no announcements, just rumors, the people that know will not talk. Its very frustrating but that's how it is here.

One lesson here for some people (particularly some Indonesian members) that always dismiss the "rumors" and refuse to believe any possibility at all unless they see it, no matter how much we tell them that the Vietnamese military is obsessed with secrecy and love to make purchases in secret and are able to keep army equipment hidden for years and years, still, they don't even want to recognize that that's how the Vietnamese military (particularly army) operates.

So here it is, the order for the T-90 was placed around 2 years ago and it seems like they have been delivered or the delivery will be fulfilled by the end of the year depending on the source.

Me and others have been saying a few times in the last 2 years that Vietnam had ordered T-90 tanks, but these people always laugh at us, well, now we know the truth.

To believe that the T-90 is a unique case would be very unrealistic to say the least. I keep seeing a pattern of deals that appeared to have been made and then... puff, nothing gets heard again. Whether is the French Caesar artillery or the Aster missiles where we even saw pictures of Vietnamese servicemen taking training classes in France or imminent equipment from India (Brahmos, etc) or from USA where there was a lot of talk about a long shopping list, etc, etc, and nothing gets heard again, I think its very likely that some of those deals have continued in secrecy. It only makes sense.

I know there is a lot more going on under the carpet, but except a lucky hint, we just don't know what's really happening.

One example, I said a few times before that Vietnam has T-72 tanks that are kept secret. Well, a bit more than a year ago, a Russian government official of the Russian military export agency said that Vietnam had approached them to upgrade its 480 T-72 tanks. Why would a Russian government official lie about that? It would make no sense. Later, unofficial reports came up that Vietnam bought those tanks from Belarus in 2009-2010. I believe the story; can I prove it? Certainly not, but there is strong circunstancial evidence.

Sometimes the rumors are not true, sometimes are true, that's how it is with the Vietnamese military and that is precisely their intention.

My point here is, don't be too quick to dismiss rumors, some of them are for real.
 
How many roughly is Vietnam looking to acquire of this class of tank longer term (64 doesnt sound enough to me)...and is Vietnam looking to assemble locally?

Since Vn focus on a defensive stance, T-90 tanks will serve as mobile counter attack. We wont need too many of them but about 8 -12 battalions are surely a must. 64 is just a start. And although we all love to produce or at least assemble them locally, our industry cant support such a move.
 
the Islamist terrorists operating in the Philippines have crossed the red line. They kidnap our people and demand ransom. When refused they bluntly kill the hostages as seen now with two Vietnamese sailors beheaded in Basilian. The government condemns the act and asks for justice. The question now is whether or not VN will actively assist the Philippine army in anti terror operations to clean the scum.

http://m.philstar.com/314191/show/b7d19a2f4c332f7cc545c940130cdec3/?
 
@Carlosa


Russia's T-90 makes inroads in Middle East market
Jeremy Binnie, London - IHS Jane's Defence Weekly
06 July 2017
An annual report released by Russian tank manufacturer UralVagonZavod (UVZ) revealed a series of T-90 deals with Middle East countries.

p1510148.jpg
A T-90MS is put through its paces during IDEX 2013. (IHS Markit/Patrick Allen)

The report was published on the UVZ website, but later removed after Russian defence analysts revealed the customers it identified using code numbers.

According to these analysts, the report stated that UVZ is planning to implement orders that Iraq and Vietnam have placed respectively for 73 and 64 T-90S/SK tanks, to finalise Kuwait's order for 146 T-90MS/MSK tanks, and work to secure an Indian order for 356 T-90MS tanks.

The T-90S is the basic export model, the T-90MS (also known as the T-90SM) is a more advanced export version, and the 'K' postfix is a reference to command versions.

UVZ will also work on a project to establish a facility to license assemble T-90S/SKs in Egypt and another to establish repair facilities for the T-90S/SKs already delivered to Algeria.

The T-90 has previously struggled to find customers in the Middle East, although Russia has supplied a small number to the Syria Arab Army or allied pro-government militia.

http://www.janes.com/article/72090/russia-s-t-90-makes-inroads-in-middle-east-market

well we all love secrecy, but in modern age like today, even such closed country cant hide such a deal. The rumours about secret procurement is not only Vietnam forte, my country had done such acts in the past and even today. How if i said Indonesia secretly buying two regiments of NASAM Medium SAMS (and planning to placed them in Natuna), got a deal with the Ukrainian to assist us in developing Short range ballistic missile system and AA missiles based on Vympel design, put more order on Leopard2, placing order on ASCOD Pizzaro, putting plan to raising at least 3 more fighter regiments (with Rafale, Eurofighter as leading contender), placing order on SIGINT/ELIN aircraft based on C295 platform and getting colaboration with Denmark to built series of AAW Destroyer and Support Frigates. Most of you would rather not believe it


Even i got valid clue and first hand photograph or documents i would rather not to discuss that until the services and other party make clear statements about such procurement.
 
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How many roughly is Vietnam looking to acquire of this class of tank longer term (64 doesnt sound enough to me)...and is Vietnam looking to assemble locally?

all in all, Vietnam has about 2000 tanks. Not sure of all the models. But that would give you some idea.

the Islamist terrorists operating in the Philippines have crossed the red line. They kidnap our people and demand ransom. When refused they bluntly kill the hostages as seen now with two Vietnamese sailors beheaded in Basilian. The government condemns the act and asks for justice. The question now is whether or not VN will actively assist the Philippine army in anti terror operations to clean the scum.

http://m.philstar.com/314191/show/b7d19a2f4c332f7cc545c940130cdec3/?

They are going to end up like the Pol pot luck.
 
So that gave the authority to US to bomb with impunity?
Actually -- Yes. The Geneva Convention says so. Let us see if you gots the brains to find out the reasoning. Finally, the Geneva Convention is not the first document to give that permission. This understanding have been around since the beginning of warfare.
 
@Carlosa


Russia's T-90 makes inroads in Middle East market
Jeremy Binnie, London - IHS Jane's Defence Weekly
06 July 2017
An annual report released by Russian tank manufacturer UralVagonZavod (UVZ) revealed a series of T-90 deals with Middle East countries.

p1510148.jpg
A T-90MS is put through its paces during IDEX 2013. (IHS Markit/Patrick Allen)

The report was published on the UVZ website, but later removed after Russian defence analysts revealed the customers it identified using code numbers.

According to these analysts, the report stated that UVZ is planning to implement orders that Iraq and Vietnam have placed respectively for 73 and 64 T-90S/SK tanks, to finalise Kuwait's order for 146 T-90MS/MSK tanks, and work to secure an Indian order for 356 T-90MS tanks.

The T-90S is the basic export model, the T-90MS (also known as the T-90SM) is a more advanced export version, and the 'K' postfix is a reference to command versions.

UVZ will also work on a project to establish a facility to license assemble T-90S/SKs in Egypt and another to establish repair facilities for the T-90S/SKs already delivered to Algeria.

The T-90 has previously struggled to find customers in the Middle East, although Russia has supplied a small number to the Syria Arab Army or allied pro-government militia.

http://www.janes.com/article/72090/russia-s-t-90-makes-inroads-in-middle-east-market

well we all love secrecy, but in modern age like today, even such closed country cant hide such a deal. The rumours about secret procurement is not only Vietnam forte, my country had done such acts in the past and even today. How if i said Indonesia secretly buying two regiments of NASAM Medium SAMS (and planning to placed them in Natuna), got a deal with the Ukrainian to assist us in developing Short range ballistic missile system and AA missiles based on Vympel design, put more order on Leopard2, placing order on ASCOD Pizzaro, putting plan to raising at least 3 more fighter regiments (with Rafale, Eurofighter as leading contender), placing order on SIGINT/ELIN aircraft based on C295 platform and getting colaboration with Denmark to built series of AAW Destroyer and Support Frigates. Most of you would rather not believe it


Even i got valid clue and first hand photograph or documents i would rather not to discuss that until the services and other party make clear statements about such procurement.
Sis mado you are right. I agree. that makes little sense to keep secret of everything, least the tanks. Such giant monster can't be hidden before satellites. Though I question why you need destroyers and submarines considering Indonesia defense paper sees a war in the SCS impossible, the likelyhood of a asteroid falling on earth killing all of us is higher and main threat to your country is Vietnamese illegal fishermen, Chinese turtle poachers, poor immigrants, Islamist terrorists and other unwanted individuals. Don't you think destroyer is overkill?
 
Sis mado you are right. I agree. that makes little sense to keep secret of everything, least the tanks. Such giant monster can't be hidden before satellites. Though I question why you need destroyers and submarines considering Indonesia defense paper sees a war in the SCS impossible, the likelyhood of a asteroid falling on earth killing all of us is higher and main threat to your country is Vietnamese illegal fishermen, Chinese turtle poachers, poor immigrants, Islamist terrorists and other unwanted individuals. Don't you think destroyer is overkill?

I definitely don't agree with all this obsession for secrecy and I think there is very little hardware that Vietnam can hide from China. In the end the hiding is effective only from the media and the regular people like us, but they do it anyway.

The fact is that if we didn't hear from Barmelay and because of that announcement from the tank factory, we would still be in the dark about this and it was going on for 2 years. And now the report was pulled which shows the intention to keep it secret.

@madokafc

Amid Sikkim standoff, India-Vietnam discuss China's aggressive posturing in Asia

http://www.newsnation.in/india-news...ressive-posturing-in-asia-article-176248.html

Its good to see that. Same story everywhere, the big bully wants to expand in all directions and for those that think that agreements and promises from China are worth anything, they just need to remember what the chinese just said about the agreement with UK about Hong Kong: "Its no longer relevant and we are not bound by it".

How many roughly is Vietnam looking to acquire of this class of tank longer term (64 doesnt sound enough to me)...and is Vietnam looking to assemble locally?

Very unlikely for Vietnam to assemble a T-90 tank locally when they are not even assembling APC's.
The quantity would not be enough to justify it anyway and the local capabilities are not up to the task.
 

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