China officially told the Indonesian government to stop appraisal drilling at Harbour Energyโs (LON:HBR) Tuna Block offshore Indonesia in maritime territory that both nations view as their own during a months-long standoff in the South China Sea, reported Reuters.
Jakarta is preparing to bolster its maritime security defences in the Natuna Sea, which is rich in fisheries and natural gas, after increasing incursions by Chinese vessels within Indonesiaโs exclusive economic zone (EEZ). The news should provide some comfort to upstream oil and gas investors operating in the Natuna Sea.
A Chinese ship has been meddling with Harbour Energyโs ongoing drilling campaign at its Tuna block in the Natuna Sea offshore Indonesia. Significantly, the appraisal drilling is funded by Russiaโs state-backed Zarubezhneft and the incident underscores the fact that Moscowโs energy interests in the South China Sea are increasingly being threatened by China.