ID :
10349
Thu, 06/19/2008 - 13:16
Auther :
Shortlink :
https://oananews.org//node/10349
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Japan, China agree on investment, joint gas project in E. China Sea+
TOKYO, June 19 (Kyodo) - Japan and China have reached political agreement on gas exploration projects in the East China Sea in a major step forward in a longstanding dispute, with Japan to invest in a gas field already operated by China and the two nations to jointly explore an area that is yet to be developed, the two governments
announced Wednesday.
While both governments stressed that the deal is ''mutually beneficial,'' the two sides have yet to work out details such as the ratio of investment and the distribution of profits. They also left for future negotiations the issue of demarcation and what to do with other possible areas for joint development, and failed to spell out a clear timeline.
''I believe this agreement is one that is mutually beneficial and in both sides' interests,'' Foreign Minister Masahiko Komura said. ''This will be a cooperation on the premise that it does not violate the respective legal positions taken by each side during the transitional period until demarcation is realized.''
Komura and Minister of Economy, Trade and Industry Akira Amari announced the agreement at a joint news conference.
Japan and China agreed to jointly explore a 2,700-square-kilometer area south of the Asunaro gas field, which China calls Longjing, stretching across the Japanese-claimed median line.
The two sides will then pick exact sites for joint development within the area and work on concluding the necessary bilateral pact as soon as possible, Japanese officials said without specifying when.
As for the Chinese-operated Chunxiao gas field, which is west of the median line and known as Shirakaba in Japan, Beijing welcomed investment by Japanese corporations in the project in accordance with Chinese laws.
Two Chinese companies are involved in oil exploration in the Chunxiao gas field -- China National Offshore Oil Corp., China's largest offshore oil producer, and China Petroleum and Chemical Corp.
The Japanese corporations will mainly be from the private sector, although government-backed entities could also be involved, the officials said. Details on the amount of investment and proportion of profits will be determined in future negotiations among the parties involved.
''I hope (the East China Sea) will become an important energy source for both Japan and China,'' Amari said, describing the deal as ''a certain solution'' to the bilateral row. ''The agreement is significant not only in terms of energy security, but also in terms of political bilateral relations.''
Prime Minister Yasuo Fukuda also welcomed the agreement, telling reporters in the evening, ''This means that we're going to make the (East China) sea a sea of peace and friendship, so based on that purpose, we'd like to cooperate with
each other in working for gas development in the region.''
Wednesday's deal, the first concrete agreement between the two sides with regard to potential resources in the disputed waters, came four years after Japan protested against China's unilateral move to begin gas exploration in the disputed areas in June 2004.
China does not recognize the Japanese-claimed median line and instead claims that its exclusive economic zone stretches further east to the edge of the continental shelf near Japan's Okinawa Prefecture.
''This agreement is a good example of how Japan and China can resolve issues through dialogue no matter how difficult they are,'' Komura said.
Meanwhile, Beijing emphasized a day earlier that the Chunxiao field, or Shirakaba, remains under China's sovereignty and that it is ''unrelated to the issue of joint development.'' The field has estimated reserves equivalent to 63.8 million barrels of oil.
Wednesday's announcement also came on the same day as Chinese protesters held a government-sanctioned demonstration in front of the Japanese Embassy in Beijing, demanding that Japan leave the disputed East China Sea.
Komura acknowledged Wednesday that on the actual demarcation of the two countries' overlapping economic zones, ''negotiations will be an extremely long process as our basic positions remain apart.''
''If the Chinese side is saying (Shirakaba) is not joint development, I have no intention to protest and say that's wrong,'' Komura said, showing understanding of Beijing's stance.
''We have won the opportunity for Japanese firms to take a stake in a place that the Chinese side has already begun developing,'' he said in response to a reporter's question. ''For us, it doesn't really matter whether that is referred to literally as joint development.''
Japan and China are both eager to explore new energy sources to satisfy their huge energy consumption and amid souring fuel prices.
The demarcation dispute in the East China Sea is also of major political and security significance as the areas concerned are close to the Japanese-administered Senkaku Islands that are also claimed by China and Taiwan, which call them Diaoyu and Tiaoyutai respectively.
announced Wednesday.
While both governments stressed that the deal is ''mutually beneficial,'' the two sides have yet to work out details such as the ratio of investment and the distribution of profits. They also left for future negotiations the issue of demarcation and what to do with other possible areas for joint development, and failed to spell out a clear timeline.
''I believe this agreement is one that is mutually beneficial and in both sides' interests,'' Foreign Minister Masahiko Komura said. ''This will be a cooperation on the premise that it does not violate the respective legal positions taken by each side during the transitional period until demarcation is realized.''
Komura and Minister of Economy, Trade and Industry Akira Amari announced the agreement at a joint news conference.
Japan and China agreed to jointly explore a 2,700-square-kilometer area south of the Asunaro gas field, which China calls Longjing, stretching across the Japanese-claimed median line.
The two sides will then pick exact sites for joint development within the area and work on concluding the necessary bilateral pact as soon as possible, Japanese officials said without specifying when.
As for the Chinese-operated Chunxiao gas field, which is west of the median line and known as Shirakaba in Japan, Beijing welcomed investment by Japanese corporations in the project in accordance with Chinese laws.
Two Chinese companies are involved in oil exploration in the Chunxiao gas field -- China National Offshore Oil Corp., China's largest offshore oil producer, and China Petroleum and Chemical Corp.
The Japanese corporations will mainly be from the private sector, although government-backed entities could also be involved, the officials said. Details on the amount of investment and proportion of profits will be determined in future negotiations among the parties involved.
''I hope (the East China Sea) will become an important energy source for both Japan and China,'' Amari said, describing the deal as ''a certain solution'' to the bilateral row. ''The agreement is significant not only in terms of energy security, but also in terms of political bilateral relations.''
Prime Minister Yasuo Fukuda also welcomed the agreement, telling reporters in the evening, ''This means that we're going to make the (East China) sea a sea of peace and friendship, so based on that purpose, we'd like to cooperate with
each other in working for gas development in the region.''
Wednesday's deal, the first concrete agreement between the two sides with regard to potential resources in the disputed waters, came four years after Japan protested against China's unilateral move to begin gas exploration in the disputed areas in June 2004.
China does not recognize the Japanese-claimed median line and instead claims that its exclusive economic zone stretches further east to the edge of the continental shelf near Japan's Okinawa Prefecture.
''This agreement is a good example of how Japan and China can resolve issues through dialogue no matter how difficult they are,'' Komura said.
Meanwhile, Beijing emphasized a day earlier that the Chunxiao field, or Shirakaba, remains under China's sovereignty and that it is ''unrelated to the issue of joint development.'' The field has estimated reserves equivalent to 63.8 million barrels of oil.
Wednesday's announcement also came on the same day as Chinese protesters held a government-sanctioned demonstration in front of the Japanese Embassy in Beijing, demanding that Japan leave the disputed East China Sea.
Komura acknowledged Wednesday that on the actual demarcation of the two countries' overlapping economic zones, ''negotiations will be an extremely long process as our basic positions remain apart.''
''If the Chinese side is saying (Shirakaba) is not joint development, I have no intention to protest and say that's wrong,'' Komura said, showing understanding of Beijing's stance.
''We have won the opportunity for Japanese firms to take a stake in a place that the Chinese side has already begun developing,'' he said in response to a reporter's question. ''For us, it doesn't really matter whether that is referred to literally as joint development.''
Japan and China are both eager to explore new energy sources to satisfy their huge energy consumption and amid souring fuel prices.
The demarcation dispute in the East China Sea is also of major political and security significance as the areas concerned are close to the Japanese-administered Senkaku Islands that are also claimed by China and Taiwan, which call them Diaoyu and Tiaoyutai respectively.
