Vietnams oil block offer is crucial to the strategic link that India needs to secure its energy interests.
Vietnams offer of five exploratory oil and gas blocks on a nomination basis to ONGC Videsh Ltd OVL reinforces Hanois outreach to New Delhi to not just enhance economic and energy cooperation but also elevate the bilateral relationship to realise the potential of the strategic partnership formally announced in 2007. Beijing has had reservations about Indian oil exploration in the South China Sea,but Vietnam has underlined that India has the right to pursue oil exploration there in Vietnams exclusive economic zone. OVL has blocks in Vietnamese waters. But New Delhis wariness of ruffling Beijings feathers has limited the scope of such ventures. OVL relinquished Block 127,another was found dry. It held on to Block 128 at Hanois request but plans to withdraw from it too. The MoU for the joint development of the five new blocks,signed during Vietnamese Communist Party General Secretary Nguyen Phu Trongs visit,exempts OVL from the competitive bidding process.
The Japanese emperor and empress who visit next week will be followed by Japans prime minister and subsequently,South Koreas president. Each visit is an opportunity for Delhi to strengthen its place in that network. For,a secure Southeast Asia will stabilise a maritime zone increasingly significant for Indias trade,energy and security interests.