CNOOC defends oil rig's operation off Vietnam coast

CNOOC chairman Wang Yilin says the company's exploration activity in South China Sea waters near Vietnam is authorised by Beijing and is not in disputed territory.

Wang also says the company is open to co-investment in disputed areas.

In his first public comments on the controversial project, the head of China's dominant offshore oil and gas producer denounced actions that had disrupted its exploration operation.

"Our exploration activity is within an area legally authorised by Beijing, and we believe it is not under territorial dispute," Wang said after the company's annual shareholders' meeting. "We oppose attempts to disrupt our activity and cause damage to our facilities."

A deepwater rig owned by CNOOC's parent China National Offshore Oil Corp was deployed early this month about 240km off the coast of Vietnam.

At the launch of the rig in May 2012, Wang described the vessel - capable of operating at a depth of 3,000 metres - as a "strategic weapon" that would "safeguard the interests" of China's marine resources and territorial waters.

Vietnam says the rig is operating within its exclusive economic zone and continental shelf as defined by the United Nations convention.