Beijing has wrapped up sooner than expected a controversial oil rig’s exploration work that triggered deadly anti-Chinese riots in Vietnam.

Most of its vessels were pulled out more than a month ahead of schedule from the rig in disputed waters of the South China Sea.

The move may temporarily ease the stand-off between China and Vietnam that developed after the rig was deployed on May 2.

But observers said it would probably return to the area near the disputed Paracel Islands – which China calls the Xisha Islands and Vietnam calls the Hoang Sa Islands – because signs of oil and gas were found.

The US$1 billion rig, known as HD 981, was originally scheduled to complete its exploration in the middle of next month.

… Li Mingjiang, an associate professor at the S. Rajaratnam School of International Studies in Singapore, said CNPC’s announcement could help defuse tensions in the short term, as anti-Chinese sentiment in Vietnam may diminish.