Japan to grant drilling rights in disputed fields<\/p>\n
Shino Yuasa, Agence France-Presse\/Tokyo<\/p>\n
Japan said on Wednesday it would allow its firms to explore for
\ngas and oil in waters disputed with China, a move likely to
\naggravate already high tensions between the two nations.<\/p>\n
Japan gave the go-ahead just days after violent anti-Japanese
\nprotests in China and despite a warning by Beijing earlier this
\nmonth that such a move \"will further escalate the situation.\"<\/p>\n
China began drilling in 2003 at the disputed site in the East
\nChina Sea, which a 1999 Japanese survey estimated had a massive
\n200 billion cubic meters (seven trillion cubic feet) of gas.<\/p>\n
Japan's ministry of economy, trade and industry said it would
\nbegin reviewing applications from companies which want to explore
\nthe Japanese exclusive economic zone of the fields -- a
\ndelineation not recognized by China.<\/p>\n
\"It is a process. We will press forward accordingly,\" Prime
\nMinister Junichiro Koizumi told reporters.<\/p>\n
Asked if the move could further worsen relations with China,
\nKoizumi said: \"This is a separate matter.\"<\/p>\n
Chief Cabinet Secretary Hiroyuki Hosoda told a separate news
\nconference: \"We have long discussed the exploration rights and
\nalready informed (China) about that. Now the time is ripe.\"<\/p>\n
The Japanese decision will raise the stakes for a meeting
\nSunday in Beijing between Japanese Foreign Minister Nobutaka
\nMachimura and his counterpart Li Zhaoxing about their troubled
\nrelationship.<\/p>\n
Asked if the gas issue would come up in Beijing, Hosoda said:
\n\"I think it's likely.\"<\/p>\n
Japan and China, two of the world's biggest energy importers,
\nhave seen their relations persistently worsen. In November Japan
\nsent a formal protest after it spotted a Chinese nuclear
\nsubmarine in the area of the gas fields, leading to a two-day
\nchase on the high seas.<\/p>\n
Ties have become even more tense in the past week as thousands
\nof Chinese took part in rowdy weekend protests against Japan,
\npelting its embassy with bottles and cans and urging a boycott of
\nJapanese goods.<\/p>\n
The demonstrations were called after Japan approved a
\nnationalist-written textbook which allegedly whitewashes its
\nbloody wartime occupation of its Asian neighbors including China.<\/p>\n
Machimura said on Wednesday he may propose Sunday in China a
\njoint study group into their shared history, a move the foreign
\nminister hopes could ease virulent anti-Japanese sentiment.<\/p>\n
Japan and China have summoned each other's ambassadors and
\ndemanded an apology during the latest row. Tokyo wants
\ncompensation for the protests and Beijing believes Tokyo must do
\nmore to atone for its militarist past.<\/p>\n
Chinese Premier Wen Jiabao, speaking on Tuesday in India,
\ntargeted Japan's cherished goal of a permanent seat on the United
\nNations Security Council, saying Tokyo needed to face up to its
\nhistory before being admitted.<\/p>\n
China has rejected Japanese efforts to mark a maritime border
\nin the disputed part of the East China Sea, which may also hold
\noil along with gas.<\/p>\n
Japan believes China has already tapped into resources which
\nTokyo considers part of its sector, through the Chunxiao and
\nDuangqiao gasfields.<\/p>\n
Industry sources said it would take roughly three billion yen
\n(US$28 million) to drill a single well.<\/p>\n
News reports said it could take a few months before the
\ncompanies were authorized to explore, let alone begin drilling,
\nand the government could decide to halt the activity.<\/p>\n
\"It is pleasing to hear about the news as we have long been
\ninterested in drilling the area,\" said a spokesman for major
\noilfield developer Japan Petroleum Exploration Co.<\/p>\n
\"We are considering applying for it on condition that the
\nproject can be commercialized,\" the spokesman said. \"We also need
\nto confirm that this uneasy situation with China would not affect
\nour business.\"<\/p>",
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"sponsor": "Okusi Associates",
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