India to prospect for oil, gas in 2 more blocks off Vietnam's coast - Livemint

To help Vietnam ‘diversify its industry and economic linkages’, India has agreed to extend a $300 million line of credit to the Southeast Asian country. Photo: PTI

New Delhi: Unmindful of China’s objections to India’s presence in the South China Sea, India and Vietnam on Tuesday signed two pacts to deepen cooperation in the energy sector including one that permits India to prospect for oil and gas in two more blocks off the coast of Vietnam.

An Indian official said the blocks are in Vietnamese territorial waters, but China issued a prompt warning with its ministry of foreign affairs saying China will firmly oppose any exploration activity in South China Sea if it undermines China’s “sovereignty and interests,” according to a Press Trust of India report from Beijing.

The two countries also signed an agreement on extension of the contract for another oil project in South China Sea. With the acceptance of two additional blocks, India has exploration projects in five Vietnamese blocks.

The two energy pacts are part of seven agreements initialled by India and Vietnam after talks between visiting Vietnamese Prime Minister Nguyen Tan Dung and Prime Minister Narendra Modi during which both sides decided to step up cooperation in defence, security, trade and counter-terrorism.

To help Vietnam “diversify its industry and economic linkages,” India has agreed to extend a $300 million line of credit to the Southeast Asian country.

In the area of defence, both leaders also agreed to “quickly operationalize” a $100 million line of credit—extended to Vietnam last month during President Pranab Mukherjee ’s visit there—that will enable Vietnam to acquire new naval patrol vessels from India.

Taken together these moves could be seen as measures to rile China, but Srikanth Kondapalli , a professor of Chinese Studies at the New Delhi-based Jawaharlal Nehru University, said that symbolism aside, they would not alter any geostrategic equation for China.

“Firstly, China has not respected Indian sensitivities— one example is Chinese transfer of sensitive nuclear technologies to Pakistan. So, India does not need to be concerned about Chinese sensitivities. There is, of course, a symbolism attached to these moves, but the Chinese will not lose sleep over this though they will make a noise,” Kondapalli said.

Dung’s two-day India visit, which began on Monday, is seen as aimed at forging deeper economic ties with India following tensions with China over territorial disputes in the South China Sea. Senior officials of India’s ministry of external affairs have billed the visit as having primarily an economic focus. But analysts say Dung’s visit—the third high-level exchange between India and Vietnam in as many months—is illustrative of Vietnam looking towards India as it grows increasingly wary of China.

Tensions between China and Vietnam spiked earlier this year when China moved an oil rig into disputed waters. China later despatched a large contingent of Coast Guard vessels to establish a perimeter which a smaller flotilla of Vietnamese naval and other fishing boats tries to penetrate, raising tensions. The incident led to riots in Vietnam in which at least three Chinese nationals were killed.

In Beijing, Chinese foreign ministry spokesman Hong Lei said “any lawful and justifiable oil exploration activity in the South China Sea is fine by us. But if such activity undermines sovereignty and interests of China we are firmly opposed to this”. Currently, the “South China maintains tranquillity in general. I wish all countries do more things that are conducive to the peace and stability of the South China Sea”, he added.

In remarks to the press, Modi put into perspective India’s intense engagement with Vietnam. Minister of external affairs Sushma Swaraj had visited Hanoi in August ahead of Mukherjee’s trip last month.

Since his government came into office on 26 May, it has “promptly and purposefully intensified our engagement in the Asia Pacific region, which is critical to India’s future,” Modi said. “It is no surprise that Vietnam has been at the forefront of our efforts,” he said.

Recalling India’s linkages with Vietnam—that stretch back decades—Modi said: “Today, our partnership is important for promoting our nations’ prosperity and essential for advancing peace and stability in our shared neighbourhood.”

“We have shared interest in maritime security, including freedom of navigation and commerce and peaceful settlement of maritime disputes in accordance with international law,” he said—a comment that endorsed Vietnam’s position.

Dung, in his comments, stressed the need for an early conclusion of a maritime code of conduct in the disputed waters.

According to Modi, India’s “defence cooperation with Vietnam is among our most important ones”.

“India remains committed to the modernization of Vietnam’s defence and security forces. This will include expansion of our training programme, which is already very substantial, joint-exercises and cooperation in defence equipment,” Modi said, adding that both sides had also agreed to increase cooperation in space, space applications and launch of Vietnam’s satellites besides the peaceful uses of civil nuclear energy.

On the economic front, Modi said he and Dung “emphasized the need for stronger economic relationship as an essential component of a strong strategic partnership”.

India saw “great opportunities” for increased trade and enhanced Indian participation in areas such energy, infrastructure, textiles, chemicals, machinery, agro-processing and information technology in Vietnam, Modi said. Dung said India could collaborate with Vietnam in a raft of areas— from information technology and biotechnology to textiles and pharmaceuticals.

“Vietnam’s recent decisions on infrastructure projects for Indian companies, the award of a banking licence to Bank of India and commencement of direct air links through Jet Airways and Vietnam Airlines reflect the new momentum in our economic relations,” Modi said.

This entry passed through the Full-Text RSS service - if this is your content and you're reading it on someone else's site, please read the FAQ at http://ift.tt/jcXqJW.

from Top Stories - Google News http://ift.tt/1oWwvz5

via IFTTT