IOCs face choppy South China Sea conditions
Beijing's determination to exert its influence in the South China Sea is causing problems for oil companies active in the region
An increasingly assertive foreign policy over maritime rights claims is bringing China into conflict with its neighbours. In March of this year, Spain's Repsol was forced to suspend drilling in the Red Emperor block, a $200m oil and gas development off Vietnam's southeast coast, after state-owned PetroVietnam—under Chinese pressure—requested a halt to activities. That prompted Repsol to lodge a compensation claim for the suspension of drilling on a field where it has been active since 2009, and which contains 45m barrels of crude oil and 172bn cubic feet of natural gas. China's resurgent maritime nationalism is focused on the so-called nine-dash line, the resource-rich U-shaped stretch of wa
Also in this section
29 January 2026
Caught between LNG risks from across the Atlantic and the wounds from Russian gas dependence, Europe needs more than a simple diversification strategy
28 January 2026
The alliance looks to bolster market management credibility by bringing greater clarity and unity to output cuts and producer capacity later in 2026
23 January 2026
A strategic pivot away from Russian crude in recent weeks tees up the possibility of improved US-India trade relations
23 January 2026
The signing of a deal with a TotalEnergies-led consortium to explore for gas in a block adjoining Israel’s maritime area may breathe new life into the country’s gas ambitions
