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Cablegate: Arrival of Petrovietnam Letter Advising Transocean to Cease

VZCZCXRO9220
PP RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHNH RUEHVC
DE RUEHHI #1454 2260851
ZNR UUUUU ZZH
P 140851Z AUG 07
FM AMEMBASSY HANOI
TO RUEHC/SECSTATE WASHDC PRIORITY 6093
INFO RUEHHM/AMCONSUL HO CHI MINH 3528
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHOO/CHINA POSTS COLLECTIVE

UNCLAS HANOI 001454

SIPDIS

STATE FOR EAP/MLS AND EEB
STATE PASS USTR BISBEE

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ENRG ECON EINV EPET MARR PREL CN VM
SUBJECT: ARRIVAL OF PETROVIETNAM LETTER ADVISING TRANSOCEAN TO CEASE
OPERATIONS IN SOUTH CHINA SEA.

(U) THIS CABLE IS SENSITIVE BUT UNCLASSIFIED. NOT FOR INTERNET.

REF: HANOI 1401

1. (SBU) On August 8, Dr. Tran Ngoc Canh, President and CEO of
Petrovietnam, sent a letter to executives of the U.S. oil company,
Transocean, advising Transocean to cease exploration drilling
activities in block 2/4 in the South China Sea (reftel).
Petrovietnam addressed the letter to Mr. J. Michael Talbert,
Chairman and to Mr. Robert Long, Chief Executive Officer & Director,
with copies to Mr. Ricardo Rosa, Vice-President, APU, and Mr. Ingo
Giesel, Operations Manager and the Ambassador.

2. (SBU) BEGIN TEXT OF LETTER

Subject: Transocean Activities in Eastern Sea

Dear Sirs,

From the industrial source reported in ODS-Petrodata (the
International Rig Report) in May 2007, Petrovietnam learn that
Transocean has recently signed the Contract for the exploration
drilling activities in so-called Block Hua Guan 2/4 for Petrochina
in the Eastern Sea.

By this notification, we would like to advise Transocean that the
above area lies entirely within Block 141 of the exclusive economic
zone of the Socialist Republic of Vietnam according to the United
Nations Convention on the Law of the Sea 1982 and Vietnamese laws.

The signing of Contract by Transocean for its drilling activities in
the exclusive economic zone of Vietnam with no appropriate
permission from competent authorities of Vietnam represents a
serious violation to the Vietnamese and international laws.

Petrovietnam therefore strongly request that Transocean understand
the extreme sensibility of this issue, terminate the mentioned
Contract and abstain from any activities infringing Vietnamese
sovereignty in the above area in order not to jeopardize the
situation and adversely affect long-term established relationship
between Petrovietnam and Transocean.

We highly appreciate your kind attention and cooperation and
remain,

Yours sincerely,

Tran Ngoc Canh

END TEXT OF LETTER

MARINE

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