New Delhi: Virtually daring China, India on Tuesday bit the bullet and signed a pact with Vietnam to participate in two more oil exploration blocks in “Vietnamese waters” in the South China Sea.
India is already participating in three blocks, and this now takes the total number to five. Vietnam recently offered five more blocks to India for participation, of which it has accepted two, sources said. Vietnam also extended the lease of participation by India in another oil block.
Hours after the pact was signed, China hit back, warning it will oppose any exploration in the South China Sea if it undermines its “sovereignty and interests”. India will also give “naval vessels”, may be four offshore patrol vessels, to Vietnam under a $100 million defence line of credit it intends to operationalise soon. India also offered Vietnam $300 million for trade diversification. In a statement, aimed at China, both countries agreed “freedom of navigation and overflight in the South China Sea should not be impeded”.
