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Teikoku Oil Officially Licensed to Drill in East China Sea

Posted on: Tuesday, 9 August 2005, 12:00 CDT

Aug. 9--FUKUOKA -- Japan's industry ministry said Tuesday Teikoku Oil Co. has completed procedures to be registered with the government as a licensed drilling company to conduct test drilling in the East China Sea.

Tetsuo Matsui, head of the Kyushu Bureau of Economy, Trade and Industry, said the Tokyo-based company has paid 10 million yen for the registration and in licensing tax, paving the way for its name to be entered on the government's roster for licensed drilling firms as of Aug. 3.

The regional bureau of the Ministry of Economy, Trade and Industry granted Teikoku Oil concessions last month to conduct experimental drilling in the East China Sea, near natural gas fields being tapped by a Chinese consortium. The ministry's approval drew criticism from Beijing, which says it hurts the Chinese interests.

Now that the company has officially become licensed to conduct drilling in the area, it can technically begin the actual work whenever it likes.

But a company spokesman suggested the company will refrain from drilling until the governments of Japan and China reach a breakthrough in their negotiations.

"We would like to start experimental drilling after safety is ensured," he said.

The row between Japan and China stems from unsettled demarcation in the sea area where their exclusive economic zones overlap.

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Source: Kyodo News International, Tokyo

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