Mikkal Herberg Quoted on China's Efforts for Deepwater Drilling
CNOOC-Nexen deal seen helping China's South China Sea thrust
08/04/2012
Paul Eckert,
Reuters
The $15 billion bid by China National Offshore Oil Corp (CNOOC) to buy Canada's Nexen, Inc will help the Chinese state giant gain the expertise to drill in deep, disputed waters of the South China Sea without relying on risk-averse foreign firms. The acquisition of Nexen (NXY.TO) -- which faces reviews by both the Canadian and U.S. governments -- will not be an instant game changer, however, because deepwater technology will take years for China to master, say experts on China's energy sector. CNOOC, parent of Hong Kong-listed CNOOC Ltd (0883.HK), has emerged as a key component of China's strategy to bolster its claims to nearly the entire South China Sea. The vast body of water, believed to hold rich oil and gas reserves, is also claimed in part by Vietnam, the Philippines, Taiwan, Brunei and Malaysia.
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Mikkal Herberg is a senior lecturer on international and Asian energy at the Graduate School of International Relations and Pacific Studies, University of California, San Diego. He is also the BP Foundation Senior Research Fellow for International Energy at the Pacific Council on International Policy and also serves as research director on Asian energy security at The National Bureau of Asian Research.
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