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China and Japan 'Agree' to Gas Deal
by Jarrett Martineau | June 16, 2008 at 08:46 am | 105 views | add comment | 0 recommendations
After an historic diplomatic summit between China and Japan in May, the two countries are reportedly close to making a formal agreement to develop gas fields in the East China Sea that have long been disputed. Although the "known reserves" are a "modest 180 million barrels" they will help meet domestic demand for oil at at time when the cost of crude has reached $140 per barrel and is likely to continue to climb.
Japan and China are reported to have agreed to jointly develop gas fields and share profits in disputed areas of the East China Sea.
The Kyodo news agency said an official announcement was expected as early as this week, while Japan's Nikkei business daily also reported that an agreement was being finalised.
China's foreign ministry made no comment on the reports on Monday while an official at Japan's ministry of economy, trade and industry said no deal had been struck.
"Talks are still going on and nothing has been finalised," the Japanese official was quoted as saying.
The reported agreement follows an ice-breaking summit in May between Yasuo Fukuda, Japan's prime minister, and Hu Jintao, the Chinese president, at which the two leaders agreed to work to settle the long-running dispute.
Japanese estimates have put net known reserves in the disputed fields at a relatively modest 180 million barrels of oil equivalent, but both countries say there might be a lot more oil or gas in the area.
June 16, 2008 at 08:46 am by Jarrett Martineau, 105 views, add comment
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