Geostrategic implications of CNOOC/Nexen deal extend to South China Sea

August 7, 2012

Will Rogers at the CNAS Natural Security blog points out that the recent China National Overseas Oil Company (CNOOC) tender to purchase Canadian firm Nexen has important geostrategic implications beyond the continuing Chinese efforts to penetrate North American fossil fuel interests.  Nexen has extensive deep sea oil drilling expertise, a field in which Chinese firms have little background.  The Nexen purchase, Rogers points out, could signal an intent to be even more aggressive in pursuing their territorial claims over the bulk of the South China Sea and its attendant resources.  As Rogers points out, “China’s foray into deep-water drilling will raise the stakes in the South China Sea. Countries like Vietnam and the Philippine that also seek to exploit the region’s deep sea fossil fuel resources could become increasingly worried about their ability to exploit resources if China gets there first – potentially increasingly the number of incidents to obstruct offshore oil and natural gas drilling activities.”


One comment

  1. […] jumps into South China Sea frayChina establishes city on island in disputed South China SeaGeostrategic implications of CNOOC/Nexen deal extend to South China Sea var jplayerswf = […]

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