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  • Energy-Climate & Environment
14 September 2019

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  • Myanmar

The risks of climate change to Myanmar were discussed at a seminar for MPs organised by the United Nations Development Programme (UNDP) in Naypyitaw this week.

The event held on September 9 gave MPs from seven Hluttaw committees a chance to discuss the issue with three international climate and environment experts working in South East Asia – including Camilla Fenning, the Head of the UK Government’s South East Asia Climate and Energy Network.

Camilla Fenning, Head of the South East Asia Climate and Energy Network, UK Foreign Office, commented that:

“Hearing from MPs about Myanmar’s climate and environmental challenges underlined the need for urgent climate action by all countries to reduce greenhouse gas emissions and step up collaboration on resilience and climate finance. Discussions also highlighted Myanmar’s huge potential for renewable energy and the economic and environmental benefits investment in green growth could bring.”

The seminar took place after fresh concerns have been raised about the impact of the climate change crisis on Myanmar. The historian U Thant Myint-U has called it the biggest challenge facing the country, recently saying that “the impact of climate change on Myanmar will be nothing less than catastrophic.”

During this year’s monsoon season in Myanmar over 100,000 people had to be evacuated from their homes because of flooding and a landslide caused by torrential rains in Mon State left more than 70 people dead.

Nicholas Davies, UK environmental specialist said:

“Climate change could have profound implications for South East Asia and Myanmar in particular. Hluttaw committees will have an important role in scrutinizing progress on this issue.”

Timothy Boyle, a UN expert on the dangers of deforestation in Myanmar, concluded that:

“Forests are an integral part of Myanmar’s economy, environment and culture, and are also the source of around 80% of Myanmar’s greenhouse gas emissions. Therefore action to ensure conservation and sustainable management of Myanmar’s forests is essential.”

Myanmar has been one of the three countries most affected by weather-related damage (storms, floods, heat waves etc.) in the last two decades, according to the Global Climate Risk Index 2019.

Scientists warn that climate change will lead to an increase in the frequency and intensity of heatwaves, droughts, floods and other extreme weather events.

Participants discussed the ongoing international climate negotiations and what actions Myanmar could take to prevent the worst impacts of climate change and adapt to its effects.

The climate of the planet is changing because deforestation and the burning of fossil fuels – like coal, oil and gas – is causing a build-up of heat-trapping greenhouse gases in the atmosphere. South East Asia is one of the regions of the world most at risk from climate change. Poverty levels remain high and a large proportion of the population and economic activity is concentrated along coastlines and rivers. The region is heavily reliant on agriculture and dependent on natural resources and forestry that are vulnerable to weather events and changes in the climate.

The UK is nominated to host a major United Nations climate change summit – known as COP26 – in 2020. The conference has been described as the most important gathering on climate change since the Paris agreement was signed in 2015, as it will review the Nationally Determined Contributions (NDCs) to limit or reduce emissions that individual governments were required to submit.

Myanmar has signed the Paris agreement and submitted its NDC in 2017. Decisions that policymakers in Myanmar take in the coming years will be crucial in determining whether the country protects its existing forests and biodiversity, and invests in clean low-carbon electricity generation or more polluting alternatives like coal.

  • Energy Cooperation
  • Renewables
13 September 2019

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  • Thailand

Thailand state-owned energy company PTT and Energy Web Foundation (EWF), a blockchain energy nonprofit company, have collaborated to develop a blockchain-based renewable energy system.

As per a press release, the two firms plan to create a regional energy solution based on the Energy Web Chain, a new ethereum-based, public, “proof-of-authority” blockchain. The product is also compliant with the International Renewable Energy Certificate (I-REC) Standard, which provides certificates guaranteeing that renewable energy sources are legitimate.

The marketplace we’re co-developing with PTT will help to connect the supply and demand that we know is there, while doing so with the data transparency, reporting credibility, and ease that is so important to emerging [energy attribute certificate] EAC markets,” Jesse Morris, EWF Chief Commercial Officer, said.


Create Your Own Cryptocurrency to Monetize Content and Grow Communities.


A government- or trade organization-appointed issuer can provide I-REC tracking certificates to energy producers. Cointelegraph noted that after tickets are forwarded to a central registry, energy suppliers and buyers can prove the renewable origin of energy by redeeming the certificates.

Certificates are the principal way nations certify they are achieving renewable energy targets; how electric utilities certify they are reaching policy and regulatory-mandated renewable energy standards, and how corporations certify they’re meeting sustainability and renewable energy targets in their reporting,” Morris told Decrypt.

Until now, Thailand and its neighbors have been untapped markets for RECs that follow international standards. However, over the past years, the country has been gearing towards greater clean energy consumption. In fact, in 2018, Thailand prodhttps://tokenpost.com/Thailands-PTT-Energy-Web-Foundation-to-develop-blockchain-renewable-energy-marketplace-3418uced nearly 28 million megawatt-hours in clean electricity, and the number is expected to double by 2037.

The proposed blockchain REC is slated to go live by May 2020.

Last month, the Congressional Research Service released a report that examines the pros and cons of using blockchain in the energy sector. The report noted that launching a blockchain solution can make an energy system more transparent, efficient, and flexible for customers.

  • Energy-Climate & Environment
13 September 2019

 – 

  • Malaysia

PETALING JAYA: Haze or no haze, Malaysia will be joining the Global Climate Strike this month, starting with a month-long Ops Darurat Iklim (Climate Emergency Operation) with workshops and documentary screenings.

The Malaysian level of the global campaign demanding urgent government action to address the climate change crisis will culminate in a rally on Sept 21.

Over 250 people are expected to gather and march from Sogo KL to Dataran Merdeka in Kuala Lumpur, starting at 4.30pm on that day.

Pressure group Klima Action Malaysia (Kamy) has joined hands with the likes of Greenpeace Malaysia and Amnesty International Malaysia to build momentum for the Global Climate Strike.

“The climate justice movement has had massive traction globally, but Malaysia has not been keeping up.

“It would be a waste if we don’t take this opportunity to push the climate agenda in Malaysia, ” Kamy co-founder Ili Nadiah Dzulfakar told The Star after a banner-making event at Rumah Seni Selangor recently, where volunteers spent a creative afternoon making banners, placards and flags for the upcoming rally.

Established only in April, Kamy has organised three demonstrations called My Climate Strike and has joined hands with other non-governmental organisations in their respective protests.

What differentiates it from other pressure groups is that Kamy’s campaign is held mainly in Bahasa Malaysia.

Ili Nadiah said it was a conscious decision as the climate narrative, largely in English, had not been able to engage with a large population in Malaysia.

“We want to inject this idea of climate change to people who don’t really understand such issues because there are few resources in Bahasa Malaysia, ” she said, adding that they were reaching out to the masses, including the B40 group and marginalised communities.

The 32-year-old said this was also why the workshops leading up to the rally were crucial.

“During the strike, we are just going to march, protest and have speeches.

“The activities prior to the rally are important to disseminate information and get the numbers that we need to come to the strike, ” she said, adding that the strike would be an exercise in freedom of speech to communicate Kamy’s four demands to the government.

These four demands are to “smash” the wall of political and media silence on the climate crisis, declare a climate emergency for financial and policy mobilisation, raise awareness among Malaysians about the climate crisis and raise the visibility of the climate narrative from developing countries.

“The climate narrative has always been told from the Western viewpoint and not from the southern region of the world, ” she said, adding that it was important to add a South-East Asian voice to the global movement.

Ili Nadiah said the theme for Ops Darurat Iklim would be centred on the haze plaguing Malaysia and some of its Asean neighbours.

She slammed Indonesia for its denials but also likened Malaysia’s move to blame the haze solely on Indonesia as “the pot calling the kettle black”.

“Indonesia has been living in denial for quite some time; they were the last country to ratify the Asean Agreement on Transboundary Haze Pollution that was proposed in the early 2000s.

“Their denial is something that we have to learn from, ” she said.

Ili Nadiah, however, added that Malaysia was also living in denial by being “selective” in releasing government data on the environmental situation here and “denying” access to this data.

“Malaysia just has 18% of its virgin forests left but the government says there is more than 50% forest cover – that is selective messaging, ” she said.

Ili Nadiah urged Malaysians from all ages and sectors of society to join the strike on Sept 21.

“It is important because this is the year where people come up to the streets to demand changes (to fend off) environmental degradation.

“Normally, this issue has always been put aside – revenue is more important… but we have to realise that all our revenue comes from our natural resources.

“When our natural resources are degraded, how are we going to get our revenue in the future?

“This is not sustainable for our economy, ” she said, adding that both the rich and the poor were being affected by climate change.

Spearheaded by 16-year-old Swedish climate activist Greta Thunberg, the Global Climate Strike will take place ahead of the United Nations Emergency Climate Summit on Sept 23.

It comes as forest fires in the Amazon, central Africa, Arctic regions in Siberia, Australia, Indonesia and more countries are burning at a historic pace.

While some forest fires are due to hot weather or accidents, many are man-made, caused by slash-and-burn practices for agriculture and cattle farming.

In Malaysia, fires are raging in the Johan Setia peatlands in Selangor as well as in Johor and Sarawak.

These forest fires happening globally are also speeding up global warming as more carbon is released into the atmosphere.

On Aug 19, Iceland lost its first glacier Okjökull to climate change after the warmest July on record.

According to media reports, scientists in Iceland together with Prime Minister Katrin Jakobsdottir held a “funeral” for Okjökull, with a memorial plaque as a letter to the future.

“In the next 200 years all our glaciers are expected to follow the same path. This monument is to acknowledge that we know what is happening and what needs to be done. Only you know if we did it, ” the plaque reads.

The plaque is also inscribed with the label “415 ppm CO2”, indicating the carbon dioxide levels in the atmosphere.

Read more at https://www.thestar.com.my/news/nation/2019/09/13/msia-ready-for-global-climate-strike#S5jf6BBCtqeagFvJ.99

  • Energy-Climate & Environment
13 September 2019

 – 

  • ASEAN

ASEAN banks are not doing enough to tackle climate change and environmental degradation.

Largely unaware of the climate-related risks embedded in their portfolios, most of them do not have a strategy to manage these risks.

Despite being home to some of the world’s largest deforestation hotspots such as the Greater Mekong, Sumatra and Borneo, only nine percent of regional banks in a recent study were found to have no deforestation policies – putting their reputations on the line by associating themselves with plantation companies that clear forests with fire and contribute to transboundary haze.

The effects of climate change are being felt across Southeast Asia but a startling 91 percent of the 35 banks in the World Wide Fund For Nature (WWF) Sustainable Banking in ASEAN report released last month continue to finance new coal fired power plants – thus increasing their exposure to climate related transition risks such as carbon taxes, significant improvements in renewable energy technology and the falling cost of clean energy.

And while ASEAN suffers from increasingly intense water-related issues such as floods, rising sea levels and depleting water resources, just 17 percent of the banks recognise water risk – and none of them require clients to conduct water risk assessments.

ESG in ASEAN banks

Source: WWF

An update of the WWF’s Sustainable Banking in ASEAN report last year, the report benchmarks 35 ASEAN banks in six countries against a set of six pillars for environmental, social and governance (ESG) integration; purpose, policies, processes, people, products and portfolio.

Just four banks – three from Singapore and one from Thailand – fulfilled at least half of the 70 criteria, with 51 percent of the banks fulfilling less than a quarter of the criteria.

Only 14 percent of the banks require their clients to commit to international sustainability standards for their sector policies, and even though regulators are increasingly expecting banks to test the resilience of their loan books to climate risks and report the results, just nine percent of the banks have developed a strategy to manage climate-related risks or have conducted climate-risk assessments.

“ASEAN’s economies are very much interdependent, which magnifies the effects of climate change and environmental destruction,” said Jeanne Stampe, WWF’s Head of Asia Sustainable Finance.

“To ensure that businesses are resilient and the people of ASEAN have a secure future, ASEAN banks need to manage climate and other material environmental risks and opportunities in their portfolios.”

There are opportunities abound for sustainable investment in ASEAN.

The region requires an estimated US$3 trillion of green investments from 2016 to 2030 in sectors such as infrastructure, renewable energy, food, agriculture and land use according to Singaporean bank DBS and the United Nations Environment Programme Finance Initiative (UNEPFI).

While the cost of this transition to low-carbon sustainable economies will be too huge for governments alone to bear, private financing can play a critical role in bankrolling this sustainable development.

Although half of the banks that offer green financial products mostly focused on renewable energy, there remains a huge financing gap in other sectors.

Positives

There are some bright spots though.

Overall, 74 percent of the banks showed marked improvement from last year, with the Singaporean trio of DBS, OCBC and UOB demonstrating leadership by prohibiting the financing of new coal-fired power plants and implementing no deforestation commitments.

Three ASEAN nations – Cambodia, the Philippines and Thailand – will have issued sustainable banking guidelines by the end of this year, following in the footsteps of Malaysia (2018), Indonesia (2017), Singapore and Vietnam (both 2015).

The central banks of Malaysia, Singapore and Thailand have joined the Network for Greening the Financial System (NGFS), which is recommending central banks and supervisors to better integrate climate-related risks into financial stability monitoring.

Meanwhile, Malaysian bank CIMB recently became the only ASEAN institute among the 28 founding banks of the UNEPFI’s Principles for Responsible Banking (PRB), a standardised framework for sustainable and responsible banking issued in July with the aim of aligning the banking sector to the Sustainable Development Goals (SDGs) and objectives of the Paris Agreement.

Awareness about the importance of maintaining ASEAN’s rich biodiversity, fertile soils and abundant oceans is the first step in promoting sustainable investment.

These natural resources are capital assets which not only produce ecosystem services such as climate and air quality regulation but also food, raw material and freshwater – valuable sources of economic and social wealth.

Not only will protecting and investing in sustainable development of these assets ensure economic security, it will also help mitigate climate change – a long-term issue which requires a long-term view from both banks and the broader public.

  • Renewables
13 September 2019

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  • Myanmar

ABOITIZ Power Corp. continues to look for opportunities abroad, including the expansion of its recent wind power investment in Vietnam.

“We are always exploring and there are actually interested sellers,” AboitizPower Chief Operating Officer Emmanuel V. Rubio. “We are looking for projects that are eligible for FIT [feed-in-tariff] and they are wind and solar projects, some operating, some for development. But, I think, what’s important is this opens up doors for us, this initial acquisition, I think the next one will be easier.”

Aboitiz Power International, a wholly- owned subsidiary of Aboitiz Power, signed a share purchase agreement for the acquisition of 100-percent ownership of Vietnam’s Mekong Wind from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd. for $46 million.

Mekong Wind holds a 99 percent direct interest in Dam Nai Wind Power, which owns and operates the 39.4-megawatt (MW) onshore wind power facility in Ninh Thuan Province, Southern Vietnam.

The acquisition is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2019.

Rubio said the wind power project could undertake an expansion by as much as 50 MW more. “I think anywhere from 30 MW to 50 MW. “Wind or solar, those are the ones attractive because of FiT,” said Rubio when pressed for details.

Aside from Vietnam, the power firm is looking at renewable-energy opportunities in Myanmar and Indonesia. “Together with our partners, we are exploring some projects in Indonesia. If ever there would be partners, then we have to look for synergies. We’ve been exploring projects that we can be 100 percent or majority, those are the preferences. We are not setting any timelines for the next one, I think, if it happens, it happens. If it’s acceptable to us, it’s acceptable to the seller,” said Rubio.

The Vietnam acquisition sets the tone for AboitizPower’s expansion in the international market.

Ninh Thuan Province boasts some of the most attractive sites for wind energy in the country. “We are excited for this opportunity not only to expand beyond the Philippines but to also bring our experience in the power generation sector, especially in the renewable-energy space, to Vietnam.

“We are proud of what we have done with our cleanergy brand in the Philippines and we will bring the same level of expertise and dedication to the Vietnam market,” said Rubio.

Dam Nai Wind is one of the first wind power projects in Vietnam to have been successfully brought online with commercial operations having commenced in late 2017.

  • Others
13 September 2019

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  • Vietnam

HÀ NỘI — Việt Nam will take strong action to promote sustainable development, investing more in the workforce and advanced technologies, moving towards digital Government and digital society, Prime Minister Nguyễn Xuân Phúc has said.

The PM was speaking at a conference on sustainable development in Hà Nội that he chaired alongside his deputy Vũ Đức Đam on Thursday.

The conference, held by the National Council for Sustainable Development and Competitiveness Improvement, the Vietnam Chamber of Commerce and Industry (VCCI), and the World Bank, was themed ‘For a Decade of More Sustainable Development’, gathering about 1,000 leaders of the Government, representatives of international organisations, experts, researchers and businesses.

Phúc asked ministries, sectors and localities nationwide to encourage businesses and people to be creative and innovative to help Việt Nam boost its competitiveness in global markets.

“We need to build policies to inspire businesses applying the circular economy model effectively, encouraging green production activities, helping the country reach the targets of the sustainable development plan in 2020-30,” Phúc said.

He also emphasised that the globalisation of technology will change thinking, but that Việt Nam must preserve its cultural values, making changes but still promoting sustainable development.

“I require ministries and sectors, especially ministers, to join with the Government to study and issue a decree on sustainable development soon, which must be renewable and practical, having concrete objectives and policies, and ensuring efficiency in the future,” the Prime Minister added.

At the event, Deputy PM Đam said the conference aimed to set cross-cutting objectives based on the development of the circular economy with scientific and technological innovations and the building of human resources towards sustainable development goals.

“It will be difficult to achieve the goals without the efforts and determination of the Government, all levels, sectors, the business community and all of society,” Đam said.

Deputy Minister of Planning and Investment Nguyễn Văn Trung said the Prime Minister issued a National Action Plan in 2017, responding to the UN’s 2030 Agenda for Sustainable Development, including 17 common goals and 169 specific goals.

“One of the important tasks set out in the Action Plan is that all Việt Nam’s sustainable development goals will be integrated into the content of the Socio-Economic Development Strategy for 2021-30,” Dũng said.

He said in recent years, the perspective of sustainable development has been integrated throughout the Socio-Economic Development Strategy 2011-20, which has been concretised in many strategies, plans and policies.

Statistics show Việt Nam’s poverty rate decreased from 9.9 per cent in 2015 to less than 7 per cent in 2017, while health insurance coverage reached 86.4 per cent in 2017. More than 99 per cent of Vietnamese households had access to electricity in 2016. The country’s GDP growth in 2015, 2016 and 2017 reached 6.7 per cent, 6.2 per cent and 6.8 per cent, respectively.

“The Ministry of Planning and Investment is currently conducting research, analysis, evaluation and selection of appropriate sustainable development goals to integrate into the Socio-Economic Development Strategy 2021-30,” Dũng added.

At the conference, experts, domestic and foreign enterprises discussed research and experience in sustainable development, including production methods of the circular economy and technological breakthroughs. These are not only actions to protect the environment and to achieve sustainable development, but also to enhance the competitiveness of enterprises.

Daniel Dulitzky, WB Director for Human Resource Development in the East Asia-Pacific Region, said although Việt Nam is showing good performance in human capital index, it is still facing challenges in ensuring high-quality human resources, which are needed to narrow the gap among ethnic minority groups and strengthen the development of the workforce.

Dulitzky also recommended reforming national target programmes, renovating the university education system and drawing private investment in education-training.

Matt Wilson, Corporate Affairs Director of Heineken Vietnam, said sustainability is a core part of the company’s long-term vision.

He said almost all of Heineken Vietnam’s bottles are returned for reuse before eventually being recycled, while materials like cardboard, aluminum, plastic and paper are reused or recycled. The firm’s initiatives including powering four of its six breweries with renewable thermal energy from carbon neutral, biomass-generated steam and reducing 2,500 tonnes of CO2 emissions from its logistic operations alone in 2018.

“We hope this will encourage more businesses in Việt Nam to think of their own sustainable development journey and how they can apply circular economy strategies to reduce waste and preserve scarce natural resources,” Wilson said.

At the conference, Chairman of the Vietnam Chamber of Commerce and Industry Vũ Tiến Lộc announced five initiatives of sustainable development that will be expanded in the future, including not-for-profit Packaging Recycling Organization Vietnam (PRO Vietnam) to support the growth of a strong, resilient domestic packaging collection and recycling ecosystem.

To promote the circular economy, Lộc proposed the National Assembly promulgate the Law on Promoting Circular Economy. Along with that, the National Assembly and the Government should soon have policies to encourage the development of circular economy models in the community and businesses, in which enterprises play a central role. — VNS

 

  • Oil & Gas
13 September 2019

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  • Vietnam

BANGKOK – Vietnam, locked in one of its most protracted test of wills with China of late, is trying to allay fears that yet another foreign joint venture energy project in the South China Sea may be canned due to pressure from Beijing.

The question over American firm ExxonMobil’s involvement in the Ca Voi Xanh, or Blue Whale, gas field project off central Vietnam arose as a Chinese survey ship remained in Vietnam’s exclusive economic zone this week, the third such encroachment over the past two months.

On Friday afternoon (Sept 13), Chinese government-owned Haiyang Dizhi 8 was anchored about 360km from the southern Vietnamese city of Vung Tau, according to information from vessel tracking website Marine Traffic.

Under escort by the Chinese coast guard, it has surveyed the area, triggering a demand from Hanoi for Beijing to immediately remove its vessels.

Vietnamese Foreign Ministry spokesman Le Thi Thu Hang, in a media briefing on Thursday, condemned China’s actions as illegal, saying that the waters in question “lies entirely within the sovereignty and jurisdiction of Vietnam”. Replying to a query, she added that the Blue Whale project was continuing as planned.

The project consists of an offshore platform, a pipeline, a gas treatment plant on the mainland as well as pipelines linking third-party plants to generate power. Singapore’s Sembcorp Industries is among the firms involved in a gas-fired power plant in the central Quang Ngai province linked to the project.

When fully up and running, the Blue Whale project is expected to provide US$20 billion (S$30.3 billion) in revenue for Hanoi and supply enough power to cover 10 per cent of Vietnam’s current demand.

China claims almost the entire oil-rich South China Sea through a vaguely defined “nine-dash line”, which overlaps the claims of the Philippines, Vietnam, Malaysia, Brunei, as well as Taiwan.

To bolster its position, it has reclaimed and militarised disputed islands in South China Sea, while engaging in an over decade-long discussion with Asean to draw up a code of conduct to manage territorial disputes.

Beijing has repeatedly tried to block companies from non-littoral states from taking part in oil exploration, and proposed that the final Code of Conduct include a clause which states that marine economic activity “shall not be conducted in cooperation with companies from countries outside the region”.

In 2017, Hanoi scrapped an oil drilling project licensed to state-owned PetroVietnam, Spain’s Repsol and United Arab Emirates’ Mubadala Development, under Chinese pressure. Less than a year later in 2018, Vietnam cancelled another project licensed to Repsol about 400km from its southern coast over the same concerns.

This year, oil drilling activities that Hanoi licensed to Russia’s state-owned Rosneft 370km south-east of Vietnam again triggered opposition from Beijing, which sent Haiyang Dizhi 8 with escorts to Vanguard Bank on the western edge of Spratly Islands. Vietnam opted to extend the oil rig’s operation.

Dwarfed by China’s naval prowess, Vietnam has opted to flex its diplomatic muscles instead. At the July meeting between Asean’s and China’s foreign ministers in Bangkok, Vietnam’s Foreign Minister Pham Binh Minh called out China’s actions for eroding trust and causing instability.

During the visit by Malaysian Prime Minister Mahathir Mohamed to Hanoi in August, both countries issued a joint statement that, among other things, “expressed serious concerns over recent developments in the South China Sea”.

Vietnam, along with the other Asean states, took part in the inaugural Asean-US Maritime Exercise this month held mostly in waters off Vietnam’s southernmost Ca Mau province. The drills helped Asean’s navies search and seize suspicious boats.

  • Others
13 September 2019

 – 

  • Vietnam

Vietnam is pushing back harder against China’s efforts to isolate it diplomatically on a territorial dispute in an energy-rich part of the South China Sea.

The foreign ministry in Hanoi on Thursday called on China to immediately order a state-owned survey vessel along with several Coast Guard escorts to leave Vietnamese-claimed waters in its exclusive economic zone, which stretches 200 nautical miles from its coast. It also said a multi-billion dollar oil and gas project being carried out by state-owned Vietnam Oil & Gas Group and Exxon Mobil Corp. in block 118 of the waters would continue unimpeded.

“Any activities that hamper Vietnam’s oil and gas exploration in Vietnamese water are violations of international laws,” Le Thi Thu Hang, a spokeswoman for Vietnam’s foreign ministry, told reporters during a briefing on Thursday.

Read more: China, Vietnam Spar on High Seas Over $2.5 Trillion in Energy

The Chinese-owned Haiyang Dizhi 8 has intermittently zigzagged across a Vietnam-demarcated block of water to study the seabed in an active drilling block operated by Russia’s state-owned Rosneft Oil PJSC since early July. China claims most of the South China Sea with a map of a nine-dash line stretching far from the mainland, and has sought to negotiate one-on-one deals with countries in the region on sharing energy and fish resources.

The latest Vietnamese statements came after China scored diplomatic wins with other South China Sea claimants. On Monday, China’s Foreign Minister Wang Yi agreed with his Malaysian counterpart Saifuddin Abdullah on the establishment of a bilateral consultation mechanism to “properly handle” disputes in the South China Sea.

China also appears to be making progress on a joint exploration deal with the Philippines, with President Rodrigo Duterte saying earlier this week he would ignore an international court ruling affirming his country’s territorial claims in order to advance energy cooperation with Beijing. Duterte said the deal would entail a 60-40 revenue-sharing scheme favoring the Philippines.

“We’re seeing a full court press with China to push its nine-dash line, press foreign oil companies and pressure countries into joint development deals,” said Carl Thayer, emeritus professor at the University of New South Wales in Australia who has written about Southeast Asia security issues for more than two decades..

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