Scramble for Asian resources raises fears
Friday, 6 June 2008
Raphael Minder in Singapore and Demetri Sevastopulo in Washington
FT Syndication Service
Energy-hungry Asian countries could increase military tensions as they struggle to secure more natural resources, according to the commander of US forces in the region.
Admiral Timothy J. Keating, who heads the US Pacific command, described the scramble for energy assets, particularly in the disputed South China Sea, as "a concern".
He told the Financial Times: "We want to make sure that countries that might have an interest in, let us say, the South China Sea understand that there are written and unwritten rules. You can't just go out there, beat your chest and say 'I hereby claim this'."
Until recently, much of the area's reserves were considered too hard and costly to access. Improved technology and surging oil prices are making more projects commercially viable.
China, Vietnam and the Philippines are among a handful of countries with conflicting claims in the South China Sea.
Last month Gazprom, the Russian group, signed an agreement with Petro-vietnam, the state oil and gas company, to develop four new deposits on the Vietnamese shelf.
Adm Keating said it was essential "to work together to eliminate the possibility for confusion, for confrontation and then crisis" and recognise the need to balance diverging priorities. "There are interests that are purely commercial and there are interests that are military so it can't just be might making right," he said.
Echoing those worries, Robert Gates, the US defence secretary, reminded participants at the recent Asian security summit that prosperity in the region had depended on "international norms and a common responsibility to protect common resources, even while pursuing individual agendas".
The conference also heard warnings about piracy and the need to secure sea lanes used to import oil from Africa and the Middle East.
The Asia-Pacific region now consumes almost three times more oil than the 8.5m barrels that it produces daily, according to Pertamina, the state oil company of Indonesia, whose reliance on imports has led it to leave Opec.
"We are talking about securing oil in regions far from here, including the Middle East, and bringing it through sea channels that are more and more congested," said Widhyawan Prawiraatmadja, senior vice-president for Pertamina.
Asian attention has in recent years focused on guaranteeing traffic through the 800km Strait of Malacca between peninsular Malaysia and the Indonesian island of Sumatra. However, much of the oil that China is importing from southern Africa is transiting the deeper Strait of Lombok, further east in Indonesian waters.
Meanwhile, China has been funding civilian port projects in countries such as Pakistan and Sri Lanka, raising eyebrows in India. "It is intriguing to see this [Chinese] concentration on maritime infrastructure," Rear Admiral Pradeep Chauhan of the Indian navy told the FT. "There is also room for international co-operation to keep an eye on Lombok."
Leading the Chinese delegation, Lieutenant General Ma Xiaotian said Beijing would continue to rely on the relevant countries to guarantee sea lanes and combat piracy. But he added: "We do need to have security for our needs in natural resources and that is a long-term worry."
FT Syndication Service
Energy-hungry Asian countries could increase military tensions as they struggle to secure more natural resources, according to the commander of US forces in the region.
Admiral Timothy J. Keating, who heads the US Pacific command, described the scramble for energy assets, particularly in the disputed South China Sea, as "a concern".
He told the Financial Times: "We want to make sure that countries that might have an interest in, let us say, the South China Sea understand that there are written and unwritten rules. You can't just go out there, beat your chest and say 'I hereby claim this'."
Until recently, much of the area's reserves were considered too hard and costly to access. Improved technology and surging oil prices are making more projects commercially viable.
China, Vietnam and the Philippines are among a handful of countries with conflicting claims in the South China Sea.
Last month Gazprom, the Russian group, signed an agreement with Petro-vietnam, the state oil and gas company, to develop four new deposits on the Vietnamese shelf.
Adm Keating said it was essential "to work together to eliminate the possibility for confusion, for confrontation and then crisis" and recognise the need to balance diverging priorities. "There are interests that are purely commercial and there are interests that are military so it can't just be might making right," he said.
Echoing those worries, Robert Gates, the US defence secretary, reminded participants at the recent Asian security summit that prosperity in the region had depended on "international norms and a common responsibility to protect common resources, even while pursuing individual agendas".
The conference also heard warnings about piracy and the need to secure sea lanes used to import oil from Africa and the Middle East.
The Asia-Pacific region now consumes almost three times more oil than the 8.5m barrels that it produces daily, according to Pertamina, the state oil company of Indonesia, whose reliance on imports has led it to leave Opec.
"We are talking about securing oil in regions far from here, including the Middle East, and bringing it through sea channels that are more and more congested," said Widhyawan Prawiraatmadja, senior vice-president for Pertamina.
Asian attention has in recent years focused on guaranteeing traffic through the 800km Strait of Malacca between peninsular Malaysia and the Indonesian island of Sumatra. However, much of the oil that China is importing from southern Africa is transiting the deeper Strait of Lombok, further east in Indonesian waters.
Meanwhile, China has been funding civilian port projects in countries such as Pakistan and Sri Lanka, raising eyebrows in India. "It is intriguing to see this [Chinese] concentration on maritime infrastructure," Rear Admiral Pradeep Chauhan of the Indian navy told the FT. "There is also room for international co-operation to keep an eye on Lombok."
Leading the Chinese delegation, Lieutenant General Ma Xiaotian said Beijing would continue to rely on the relevant countries to guarantee sea lanes and combat piracy. But he added: "We do need to have security for our needs in natural resources and that is a long-term worry."