Japan May Propose Specific Areas for Joint Gas Production

Japan has begun considering the possibility of proposing to China that the two nations specify areas in the East China Sea where they should jointly produce natural gas after first confirming a broad 2006 agreement on joint production, Japanese government officials said Saturday.

Japan wants to secure Chinese consent for starting negotiations under the new proposal for a joint production accord when Prime Minister

Shinzo Abe meets

Chinese Premier Wen Jiabao, who will fly to Japan on Wednesday, the officials said.
The accord reached Oct. 8 between Abe and Chinese President Hu Jintao, calls for the two nations to strive to conclude an agreement to jointly produce gas in the waters.

The new two-stage proposal would shelve the issue of where the demarcation line should be drawn between the two countries’ 200-nautical-mile exclusive economic zones, so that China will find it easier to start negotiations on concluding the broader deal, the officials said.

China has refused to recognize a median line demarcated by Japan in the waters due to territorial considerations.

On the basis of the two-stage proposal, Japan would like to speedily produce a specific agreement on where the two will develop offshore gas fields, the officials said.

Rigzone