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Controversial China rig resumes work

A Chinese oil rig that was the cause of a diplomatic dispute with Vietnam has returned to work after being moved from disputed waters. In May, the 34,000 GT Hai Yang Shi You 981 (HYSY 981), a drilling rig built in 2011 and operated by China Oilfield Services, began exploratory drilling in the disputed South China Sea (SCS), roughly mid-way between the Chinese held Paracel Islands and the Vietnamese coast. The Vietnamese government protested that the action was illegal and dispatched maritime police to the location of the rig. According to a statement from China's Maritime Safety Administration, the new location of the rig is 68nm off the south-eastern tip of Hainan Island, which is about 200nm to the north-west of its previous location. The new drilling operation is expected to last until 30 September. The rig's owner, China National Offshore Oil Corporation, said it had been withdrawn after exploratory drilling was complete. Oil and gas reserves have apparently been located. Responding to suggestions that the rig had been moved for diplomatic reasons, a spokesperson for the Chinese Foreign Ministry said that the relocation of the rig was in line with the firm's own plans, and not due to external pressure. Wang Zhen, a senior geological expert at the China Engineering Academy was quoted by the Xinhua News Agency as saying that the rig was moved away from deep water as a precaution ahead of the upcoming typhoon season. Source : IHS Maritime 360