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March 1, 1971 U.S. Oil Companies in South Vietnam Q: Is the South Vietnamese Government planning to grant off-shore oil leases to American companies? Are rich oil possibilities one of the reasons leading us to continue U.S. presence in Vietnam? A: South Vietnam passed a new law last year governing off-shore oil concessions. The regulations are still being drawn up, and the South Vietnamese Government has not yet called for bids. This is one of the few feasible areas of the world where concessions have not yet been granted. There has been very little exploration. We know that some American companies are talking with the Vietnamese Government, but we do not know all the companies involved. We assume that major international oil companies, some of which are not American, would be interested in talking with the South Vietnamese Government on this. Since South Vietnam now has a petroleum deficit of $30 million a year, it is natural that it should explore the possibilities of a national source of energy. Petroleum potential is not a factor in our decisions on Vietnam.

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    "ocrText": "March 1, 1971\nU.S. Oil Companies in South Vietnam\nQ:\nIs the South Vietnamese Government planning to grant off-shore\noil leases to American companies? Are rich oil possibilities\none of the reasons leading us to continue U.S. presence in Vietnam?\nA:\nSouth Vietnam passed a new law last year governing off-shore\noil concessions. The regulations are still being drawn up, and\nthe South Vietnamese Government has not yet called for bids.\nThis is one of the few feasible areas of the world where\nconcessions have not yet been granted. There has been very\nlittle exploration. We know that some American companies are\ntalking with the Vietnamese Government, but we do not know all\nthe companies involved. We assume that major international\noil companies, some of which are not American, would be\ninterested in talking with the South Vietnamese Government on this.\nSince South Vietnam now has a petroleum deficit of $30 million\na year, it is natural that it should explore the possibilities of\na national source of energy.\nPetroleum potential is not a factor in our decisions on\nVietnam."
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