Vietnam’s oil blocks

VIETNAM has offered five exploratory oil and gas blocks on a nomination basis to ONGC Videsh Ltd. (OVL). These are exempt from competitive bidding according to the MoU signed for joint development of the new blocks. It shows Hanoi’s keenness to collaborate with Delhi. The objective is not merely to enhance economic and energy cooperation but also to elevate the bilateral relationship in order to strengthen the strategic partnership announced in 2007. China is not happy about Indian oil exploration in the South China Sea. But Vietnam has said yes to it in its exclusive economic zone. India does not want to rub China the wrong way. OVL has relinquished one block and is planning to withdraw from another.
India and Vietnam have been very close since the days of the Vietnam War intensified by the US presence. It is up to the two countries now to explore the possibilities of a new Asian balance of power. India’s Look East policy in respect of Vietnam shows complications. Hanoi has extended a hand of friendship to Washington and may move towards Tokyo. India should go all out to find a new partner in Vietnam to tackle maritime disputes. True, China and Vietnam have strong economic ties but India should prioritize its own security and economic interests. Furthermore, Delhi should realize that bilateral relations are not enough and look forward to the emergence of a strategic network for Southeast and East Asia. No dividing line can be drawn between the Indian Ocean and the South China Sea in freedom of navigation and pursuit of economic concerns. Japan’s emperor and empress are coming to India followed by its Prime Minister. So is South Korea’s Prime Minister. All this should enable India to find its place in the strategic network in the offing.