China and Japan Reach Gas Deal
Japan and China on verge of ending long-running battle over potentially lucrative energy sources in East China Sea with agreement to jointly develop gas fields along disputed maritime border
Japan and China are on the verge of ending a long-running battle over potentially lucrative energy sources in the East China Sea with an agreement to jointly develop gas fields along their disputed maritime border.
The deal, which has yet to be confirmed, comes soon after the Chinese president, Hu Jintao, and the Japanese prime minister, Yasuo Fukuda, vowed to end the dispute during a summit in Tokyo last month.
Japan says it has identified the equivalent of 92m barrels of oil in the area, but both countries agree that further exploration could reveal much bigger quantities.
Negotiations started after China unilaterally began explorations in the area in 2004 amid accusations that it would also tap into deposits on the Japanese side of the disputed border.
Although demarcation of their overlapping maritime territory has yet to be settled, the two sides agreed to give private firms the go-ahead to start drilling and to take profits commensurate with their respective investments, the Kyodo news agency reported.
An official announcement is expected later this week, it said.
The deal, which has yet to be confirmed, comes soon after the Chinese president, Hu Jintao, and the Japanese prime minister, Yasuo Fukuda, vowed to end the dispute during a summit in Tokyo last month.
Japan says it has identified the equivalent of 92m barrels of oil in the area, but both countries agree that further exploration could reveal much bigger quantities.
Negotiations started after China unilaterally began explorations in the area in 2004 amid accusations that it would also tap into deposits on the Japanese side of the disputed border.
Although demarcation of their overlapping maritime territory has yet to be settled, the two sides agreed to give private firms the go-ahead to start drilling and to take profits commensurate with their respective investments, the Kyodo news agency reported.
An official announcement is expected later this week, it said.
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