Teikoku won't rush E. China Sea drilling

July 21, 2005
Drilling in a disputed area of the East China Sea could be too dangerous for employees of Teikoku Oil Co. Ltd. despite a go-ahead from the Japanese government last week, according to the firm's president.

Eric Watkins
Senior Correspondent

LOS ANGELES, July 21 -- Drilling in a disputed area of the East China Sea could be too dangerous for employees of Teikoku Oil Co. Ltd. despite a go-ahead from the Japanese government last week, according to the firm's president.

In an interview with Japan's Nihon Keizai Shimbun newspaper on July 20, Masatoshi Sugioka also said Teikoku might apply for exploration rights in other parts of the sea along the disputed boundary with China.

Japan approved a request July 14 by Teikoku to drill for natural gas in the East China Sea along a disputed border with China, prompting Beijing to warn about the possibility of worsening ties (OGJ Online, July 14, 2005).

"For now," he said, "we have no choice but to wait for the situation to improve, although we are eager to immediately start development work in the potentially gas-rich area, even if we have to spend our own money."

He said safety questions would deter drilling even if the Japanese government offered to finance the work.

He also confirmed that Teikoku has filed applications since 1969 to explore north of the authorized area in the East China Sea.

Contact Eric Watkins at [email protected].