China's Foreign Ministry told a daily news briefing on Wednesday that the $1 billion deep-water platform Haiyang Shiyou 981 was “not drilling” in the South China Sea, following a warning from Vietnam against such activity.

Vietnam alleged this week that Beijing had steered the rig into a stretch where jurisdiction is unclear, according to Reuters.

According to China's Maritime Safety Administration, under current drilling plans, the CNOOC rig would be deployed roughly 140 kilometres south of China's Hainan island, and 150 kilometres west of the Paracel Islands that China occupies and Vietnam claims.

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