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Spratly Islands dispute

Territorial dispute involving multiple countries over the Spratly Islands

  • 29 min read
  • 8 chapters

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Through Territorial dispute, China and Petroleum

Most of the "maritime features" in this area have at least six names: The "international name", usually in English; the "Chinese name", sometimes different for PRC and ROC (and also in different character-sets); the Philippine, Vietnamese and Malaysian names, and also, there are alternate names (e.g. Spratly Island is also known as Storm Island), and sometimes names with European origins (French, Portuguese, Spanish, British, etc.).

Although not large, reserves of oil and natural gas have been found in the area. It is a commercial fishing ground and close to global shipping routes. Its strategic position allows countries to monitor maritime activities in the area and project military power. The United Nations Convention on the Law of the Sea (UNCLOS) does not decide on the sovereignty of disputed territories, as that requires separate legal and diplomatic efforts beyond the scope of UNCLOS. Additionally, China (PRC), Taiwan (ROC), and Vietnam are the only ones to have made claims based on historical sovereignty of the islands.

Background information

Hydrocarbons

Hydrocarbon exploration connected with the wider Spratly Islands dispute has included activity at Recto Bank (Reed Bank), a submerged bank west of Palawan that is geographically separate from the Spratly Islands proper and is subject to overlapping maritime claims.

Petroleum exploration in the Recto Bank area began during the 1970s. Natural gas was discovered in the Sampaguita structure in 1976 following the drilling of an exploratory well. Three wells were subsequently drilled at the southwestern end of the structure, two of which tested gas at rates of 3.6 million and 3.2 million standard cubic feet per day, respectively.

In 1992, the PRC and Vietnam granted oil exploration contracts to United States oil companies covering overlapping areas in the Spratlys. In May 1992, the China National Offshore Oil Corporation (CNOOC) and Crestone Energy, a United States company based in Denver, Colorado, signed a cooperation contract for the joint exploration of the Wan'an Bei-21 block, a 25,155 square kilometres (9,710 mi2) section of the southwestern South China Sea that includes areas claimed as part of the Spratlys.

In 2012–2013, the United States Energy Information Administration estimated that contested areas such as the Paracel Islands and the Spratly Islands contained very little oil and natural gas. Most of the estimated 11 billion barrels of proved or probable oil reserves and 190 trillion cubic feet of proved or probable natural-gas reserves in the South China Sea were situated near undisputed shorelines.

Commercial fishing

In 2010, the Western Central Pacific (excluding the northernmost reaches of the South China Sea closest to the PRC coast) accounted for 14% of the total world catch at 11.7 million tonnes. This was up from less than 4 million tonnes in 1970. In 1984, Brunei established an exclusive fishing zone encompassing Louisa Reef in the southeastern Spratly Islands.

Global shipping

The area is close to some of the busiest shipping lanes in the world, accounting for $3.4 trillion of the $16 trillion global trade in 2016.

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