SHANGHAI, July 16 A Chinese oil rig near the
disputed Paracel Islands in the South China Sea found "signs of
oil and gas", the official Xinhua news agency said, more than
two months after its deployment to waters also claimed by
Vietnam hurt ties with Hanoi.
The China National Petroleum Corp, China's dominant oil and
gas producer, "will assess the data collected and decide on the
next step", Xinhua said, quoting a company statement.
The Vietnamese government has said the $1 billion deepwater
rig was in its 200-nautical-mile exclusive economic zone and on
its continental shelf. China has said the rig was operating
completely within its waters.
(Reporting by John Ruwitch; Editing by Paul Tait)