Oil drilling dispute

Japan has objected to Chinese development of natural gas resources in the East China Sea in an area where the two countries Exclusive Economic Zone Under the law of the sea, an Exclusive Economic Zone is a seazone over which a state has special rights over the exploration and use of marine resources. It stretches from the edge of the state's territorial sea out to 200 nautical miles from its coast. In casual use, the term may include the territorial sea and even the continental shelf beyond (EEZ) claims overlap. Japan claims a division of the EEZ on the median line between the countries' coastlines. About 40, 000 square kilometers of EEZ are in dispute. China and Japan both claim 200 nautical miles EEZ rights, but the East China Sea width is only 360 nautical miles. China claims an EEZ extending to the eastern end of the Chinese continental shelf which goes deep into the Japanese EEZ beyond the median line.[28]

The specific development in dispute is China's drilling in the Chunxiao field, which is three miles west of the median line, but which Japan contends may be tapping natural gas reserves which extend past the median line. The Chunxiao gas field in Xihu Sag in the East China Sea The East China Sea is a marginal sea east of China. It is a part of the Pacific Ocean and covers an area of 1,249,000 km². In China, the sea is called the East Sea is estimated to hold reserves of more than 1.6 tcf of natural gas Natural gas is a gas consisting primarily of methane. It is found associated with fossil fuels, in coal beds, as methane clathrates, and is created by methanogenic organisms in marshes, bogs, and landfills. It is an important fuel source, a major feedstock for fertilizers, and a potent greenhouse gas and is expected to become a major producer in the next ten years. Commercial operation was expected to begin in mid-2005 at a production rate of 70 bcf per year, rising to 282 bcf by 2010. Sinopec Star has reserves of 7 tcf of gas, 1.9 tcf of which is held in the Chunxiao area.[28]

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