China Begins Its First Deep-Sea Drilling Project In The South China Sea

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Chinese Drill For Oil In Troubled Waters -- Financial Times

China’s largest offshore oil producer Cnooc has started its first deep-sea drilling project in the South China Sea, a move analysts see as a response to domestic pressure on Beijing to assert its claims in the disputed area.

Cnooc 981, China’s first self-developed deep sea drilling platform, started work in a spot 320km south-east of Hong Kong on Wednesday, the company said, adding it was planning to drill three wells and was optimistic that it would find oil.

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My Comment: The Chinese are now following up on their claims by starting to drill for oil. If significant oil is found .... expect tensions in the region to expand appreciably as other countries (China included) start to assert their territorial competing claims and demands with more oil drilling and the positioning of naval forces.