“Signs of Gas and Oil” found by Chinese rig near disputed Islands

After the drilling of a Chinese Oil rig near the disputed islands of South China Sea, a sign of gas and oil has been found. This was said by a Chinese energy firm official after two months of operation.

"China’s USD1 billion deep-water rig was moved on southernmost province of Hainan", said by China news agency but no details has been released.  The relocation of the rig’s was to reduce rising tensions by two neighbors.

The rig was 200 nautical miles EEZ and it is on the continental shelf and within the waters of the Paracel Islands that China occupy.

National Petroleum of China (CNPC) said that the rig was “smoothly completed” and it found signs of gas and oil on the area. Its next step is to analyze its data gathered and evaluate the deposit of gas and oil.

China previously said that they are scheduled to explore around the Paracel waters until August of 2014. The data was not clear why the exploration was done month ahead on its scheduled operation. But according to Xinhua the operation was done a head due to the typhoon season.