A Chinese coast guard vessel fired water in May at a Vietnamese vessel off the coast of Vietnam after China deployed an oil rig in disputed South China Sea waters. AP Executives at Talisman Energy Inc. are excited about promising oil-and-gas prospects off the coast of Vietnam and the Canadian company is gearing up to drill two exploratory wells there this year. “I would describe these as world-class exploration blocks,” says Paul Ferneyhough, the Calgary, Alberta, company’s vice president for Asia-Pacific operations. The U.S. calculates that the South China Sea likely holds nearly 11 billion barrels of oil and 190 trillion cubic feet of natural gas. There is a problem: Proceeding with drilling could bring Talisman into conflict with China, which claims some of the blocks as its own. Talisman declined to comment on China’s position. The company says it accepts Vietnam’s assurances that it has the right to […]