Kuwait/Saudi oil level in South Vietnam

From one of my old posts to the other place...

1969



A man in his thirties, dressed in a fine, conservative suit, fumes.

"Shit. I'm still in Saigon" The Pan Am jet, his ride to cooler

climes, delayed. He stuffs his ticket back into his pocket, and

walks back to one of the few places that he knew had good working

A/C: the Airport Bar, and a slight chance of meeting up with a cute

stewardess, or local girl.



He walks on in, and given the time, oddly empty.

Wandering up to the bar, slides onto a stool, hails

the bartender- 'Hey there, Huynh! Still here, flight's late.

pour me a double.'



Bartender strolls over, and pours Jim Beam. "bet you can't wait

to get back- Big promotion for you."



"Damn straight!. Got lucky by running that geologist, and getting the

Brass Hats back in L.A. to believe his reports. Everyones going

to be rich off this- even you: the Bar is going to be going

gangbusters for you. Oilmen always spend more than GIs"



Huynh grins.



"Thats right, and I won't forget you or your cousin, otherwise

I wouldn't have got my foot in the door to talk with Thieu.

Unocals going to be doing big business off the South Coast.

From the reports I got on the test wells we sank, I think there

is as much oil offshore as there is in Iran or Kuwait. Thieu's

in position to be as rich as King Faisal if he sticks with

that deal giving us at Unocal full distribution rights

for developing those oil fields for South Vietnam.

I'm so damn happy- we are all going to be rich, that I

don't mind that the 727 is Late. Pour me some more!"



April 1970: Saigon, Hotel Rex, Penthouse



"Greetings General. I trust your flight from Seoul was pleasant"



"Very much so, as was the reception, General Ky. Quite a good

effort with having the National Assembly ratifying the Unocal

Development Plan.That will mean much for your country, and ours.

I am heartened that President Thieu had contacted us"



"Please - I am just the Vice President now.

Things are changing quickly, with disarray in America over

the matter in Cambodia and Laos. That Communist stooge, Sihanouk,

is probably kissing Mao's boots right now to get aid for his

rebels. We know Kissinger is trying to deal with Le Duc Tho,

right now in Paris.

I suspect his intent is not the best for the Republic

of Vietnam, but as a sop to the rabble from the

Universities, promises on leaving us.



This oil gives us an option other than the

one we are on: Our hope is this path can include the

Republic of Korea. The President, and I, agree on this

fully"



"Now, your 20 year agreement with Unocal was that they get

100% distribution rights: seems you don't have much

to work with."



"Actually, no. besides the normal Fees and Taxes, there is

a rider for providing that Oil for our military use, is not

part of that distribution agreement. That Military use,

allows us to resell up to 25% total production on the World

Market. I feel that clause wasn't thought out by the

Unocol team that we signed with last month, in the haste to

get us to sign



Of that 25%, we are willing to supply the ROK at below

OPEC market prices, in return for Military aid, and Consumer

Goods. I feel that with Korean Troops, we can keep

the Communists under control in Cambodia. Lon Nol has already

agreed, as we both feel that Nixon might not keep

US Forces engaged: His Congress is giving him many problems.

The number of US troops will only get smaller as times goes on

with the 'Vietnamization' program.

If we could get another ROK Division, it won't matter

if American Ground Forces pull back, ROK and ARVN can

hold the infiltration routes."



"How soon till the oil platforms will be ready? Its been

several months since the agreement was signed"



"The Americans can work wonders when they choose. Several

platforms are operational now. As we speak, Refineries

are being built near Vung Tau. We are selling Crude now,

and will be selling refined products in 3 months.



We are hoping, as part of the agreement, to buy

oiltankers, from Hyundai or Samsung, of course, to

transport it."



"I think that we are in agreement. The contract will

be signed. More Troops will be a more difficult task,

but still possible. It is to both of our countries advantage."



Both men smile.



late April 1970. The beach by Vung Tau



A tanned GI strolls over to where some others were camped,

with lawnchairs and what looks to be coleman coolers filled

with ice and cans.



"hey - looks to be way too much beer for just two to take care

of, I bet you need help to get those brews secured."



The man on the left drawled "Pull up a chair, son: My treat.

I am very short, I've got new orders I'm waiting for the trip

back to the States to get firmed up,and am enjoying myself

mightly in the mean time"



The second man snorted "Your beer? Damn, you jet jockeys

take credit for everything. Just not modest like us quiet folk

at 1st Air Cav. It's my damn beer,thank you very much,

duly traded for by _myself_. I had to trade some VC flags and

junk to some seebees to get this fine 'Grain Belt' beer.



But come on over an drain a few, as I am not short, but my 3

day pass is nearly done with. so have a cold one" tossing a

can over to the Newcomer.



The newcomer laughed and grabbed the can "Well, name's Dan.

I'm no master of jet planes or helicopter rider, but I drive

a desk back in Saigon, and without my typewriter,

forms and Carbon Paper, neither of you would be enjoying

the Passes that allowed this fine day at the beach.

Winning the War by the mighty MOS 70A10, Clerk."



All three get to the serious business of emptying cans, and enjoying

the scenery, while listing to a National Panasonic transistor radio.



"So Dan, since you seem to be the ranking REMF present,

whats the deal with that refinery down the coast? Wasn't

there last time I pulled leave a few months back." said

the burly one.



"I think it a new Unocal plant, for those offshore

platforms that been popping up"



"Nope. Sorry Dan, close. Its a new high volume plant

by a new compamy- National Petroeum of Vietnam. They are

in cahoots with Unocal though" said the lanky pilot.



"really?"



"Yep,Checked into it for my Daddy, he's in the business back

in Texas and was wondering about it. Unocal and them are

cutting Shell, Esso and Caltex out,and bet that they will

try to undercut contract prices.

Shell and the others were refining the small amount of

oil that vietnam was producing prior to that offshore

discovery, and selling that gas to the Army and AirForce

at a good profit.

Besides, I wanted to know too, its those damn

platforms that got my behind here in Vietnam"



"No Shit. How so?"



"I was a happy pilot back in Texas ANG, Flying the Duece.

Anyhoo, some damnfool chinaman decided that the PRC needed

to send recon flights over those new platforms, as they reach

near out to the Spratlys, to see what was up. One thing led

to another, and somebody at MACV got thier panties in a knot.

the 147th FIS was just finishing up on thier tour, and then

got new orders cut. F-102 to Return to Tan Son Nhut AFB, and

fly Alerts, and escort anything flying with a Red Star painted

on the side back to China that got too close.



So instead of drinking beer in Texas, I drink it here.



No Idea why they didn't just have the Navy do it.

Plenty of F-4s on those carriers.



But like a said, i'm a short timer now, as they are pulling

the Dueces back out again, back to the States, Moving a Voodoo

2 seater unit in to take the place of the 147th"



"That makes sense. Talked with a jarhead the other day,

the Navy is having real busy time out there, those platforms

also sit right in the path that the North uses to infiltrate

boats&ships into the South. Heard there was trouble with the

platforms getting shot at and stuff. Navy is spending a lot more

time checking Junks out now. He even said that the platforms

are armed- cannons, missiles, radar,all kinds of shit now.

all unofficial& very hush hush. says they anchor a patrolboat

nearby for cover. You hear anything on that, Dan?"



" No, just some crazy talk that the Navy was using

'killer dolphins' to nail NVA frogmen out there. "



"Now I know I been drinking too much. Dolphins?

Hell, they drafted Flipper! Wondered why that show went off TV!



Come on now boys, my pockets are full of MPC script and piasters,

I'm sure you two can help me spend it, as its all monopoly

money back in the States."



"Sure thing, Tex, know just the place where the B-Girls are nice."



"well, what you waiting for, Clerk Dan, we are waiting for your Orders-

Lead the Way!"

---------------------

Now our story so far.

1969 - large deposits of light offshore Oil discovered by a small Unocal

research team from the Con Son Islands to the Spratlys, to the Paracel

Islands.



Moving quickly, Unocal signed a deal(very generous, due to Unocals'

suits missing the importance of a side agreement on sales) with the

Republic of Vietnam. This deal was good enough, that the companies

currently doing business in the RVN were cut out of the

picture by South Vietnam, thier pre- offshore discovery business

looking small change.



This sudden windfall soured relations between Unocal and the other

Producers, making it difficult for unocal to go with its normal

suppliers. Contacts between Vice President Ky and the South Koreans,& their

growing heavy industry with companies like Hyundai and Samsung, made possible

to being able to supply Unocal with the vast amounts of material to build the

platforms and supporting infrastructure needed.





This deal also put President Thieu in charge of the new company,

National Petroleum of Vietnam, though this is not visible unless

a close look is done at the companies structure. One would also notice

that some ARVN Generals were resigning, to take over posts in the

companies structure.



Relations between President Thieu and Vice President Ky are improved to pre

Tet'68

levels, as both Ky and Thieu see that they do need each other to

succeed.



Vietnamization in ongoing, accelerated by S. Korea's offer to add

to the Free World Allies contingent by an additional Division. This

allows additional US troop withdrawals, including parts of the

troubled Americal Division to rotate back. For some in the US,

however, find themselves & the Nat. Guard units they are in are

sent over,unexpectedly activated.



Many in South Vietnam notice the increased presence of the South Koreans,

Most visible is the larger numbers of the Han Jin company transports

moving oil&gas where Shell or Caltex once had. Others notice their

new military presence in patroling the 'Iron Triangle'



New Oil platforms were quickly raised in the South China Seas,

unsurprisingly causing trouble with North Vietnam, and

unexpectedly with Red China.



South Vietnam claimed the areas where the platforms went up,

flying the Flag of the Republic of Vietnam, and North Vietnam

tried to disrupt operations on these platforms with small unit

attacks by sea, and late Jan. 1970 by several Il-28 'Beagles'

flying from Hanoi. After the bombing(which did little damage

to the uncompleted platforms) USS Long Beach took down the

attackers with long range 'Talos' SAMs, with F-8 Crusaders

from USS Oriskany forcibly 'escorting' Chinese Tu-4

'Bull' recon planes away from the area afterwards.



South Vietnam and USA claimed the platforms as RVN territory, each

with its own 12 mile territorial water limit, enforced by the USN



the new platforms were armed(and USN crewed) and had US Marines

for security.



Much acrimony followed in the UN.



ARVN units had massed on the Cambodian border in March following

the Coup by Lon Nol, and his failure to stop Communist infiltration

and by his turning a blind eye to his Military ethnic cleansing

of ethnic Vietnamese living in Cambodia, whether they were

Communists or not.

The sight of mutilated bodies of ethnic Vietnamese merchants&

thier families floating down the Mekong River, filled ARVN troops

with resolve that was seldom seen before.



During a heated telephone exchange between Thieu and Lon Nol

over the atrocities, Nol had a serious Stroke, and would spend

the last two months of his life in a hospital bed.



The following day, Pres. Thieu announces to the world that

ARVN forces would advance to Phnom Phen to help acting

Premier Prince Matak restore order.



unannounced was President Nixon authorizing airstrikes to support

the ARVN thrust to take the 'Parrots Beak' and secure highway

Route 1 to Phnom Phen, along with AirMobile troops to assist.

but no ground formations, as it was thought that with the

ARVN Troops freed up by the Koreans, 45,000 men would be enough.



However, shortly afterwards, the Nixon administration put

Operation PROUD DEEP into effect in April 1970, the End

of the Bombing Halt of the North, and rotated more modern USAF Air

Defense

assets in country should the North (or some whispers of China)

decided to try more bombing of Southern targets. Airfields and

SAM sites were targeted, and the exclusion zone reduced by the

Chinese Border.



The Bombings cut enough supplies to the NVA & VC to allow the

ARVN forces to hold onto Route 1



From Peking, Prince Sihanouk rails against the pro-American government

in Cambodia after the National Assembly requests aid from the US

and other Free World Allies, and gets pledges of aid from other

groups like the Pathet Lao, Viet Cong and Khmer Rouge



Tensions are rising all over Asia