A source in the south-east Asian oil industry has told journalists that the company behind the drilling, Repsol of Spain, was ordered to leave the area.
It comes only days after it had confirmed the existence of a major gas field. Those reports have been corroborated by a Vietnamese diplomatic source.
According to the industry source, Repsol executives were told last week by the government in Hanoi that China had threatened to attack Vietnamese bases in the Spratly Islands if the drilling did not stop.
China claims almost all of the South China Sea, including reefs and islands are also contested by other nations.
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