Beijing said on Wednesday that a $1-billion deepwater oil rig was not drilling in disputed territory in the South China Sea, Reuters reported.

Beijing said on Wednesday that a $1-billion deepwater oil rig was not drilling in disputed territory in the South China Sea, Reuters reported.

The Chinese Foreign Ministry’s statement came in response to a warning from Vietnam against such activity. It said Beijing had steered the rig, the Haiyang Shiyou 981, into a stretch where jurisdiction is unclear.

The drilling platform “is operating in Chinese-controlled waters that are completely undisputed,” Chinese Foreign Ministry spokesman Hong Lei said.

“We hope the Vietnamese side can view this calmly, meet China half way and jointly work hard to appropriately handle relevant maritime issues,” the spokesman added.