December 02, 2008

China and Japan to discuss on Chunxiao gas field project

It is reported that Chinese companies welcomed the participation of Japanese legal person in the development of the Chunxiao gas field in accordance with Chinese laws.

As per report companies or legal persons of both countries will negotiate in line with Chinese law governing cooperation with foreign enterprises in the exploration and exploitation of offshore petroleum resources

Mr Liu Nanlai a research fellow with the law institute of the Chinese Academy of Social Sciences said such cooperation is a way for Chinese companies to attract foreign capital in compliance with the Regulations of China on the Exploration of Offshore Petroleum Resources in Cooperation with Foreign Enterprises. He said that the exploration of Chunxiao gas field is China's assertion of sovereign rights in its inalienable sea water.

Mr Liu said the Japanese legal person, who abides by Chinese laws, could gain the qualification of participating in the development of the Chunxiao gas field through signing commercial contracts. This is virtually the same as foreign companies bidding for the gas exploration of the Chinese oil companies. He said that "So far, Chinese oil companies have carried out such cooperation with foreign oil companies many times and achieved good results."

Mr Liu said, such cooperation is the first step of joint development of the East China Sea, which will be conducted in the transitional period before the delimitation of the area. He said that the joint development of the East China Sea cannot be carried out according to Chinese or Japanese laws alone, but needs the two sides to make special arrangements through negotiations and to sign agreements.