Japan to announce joint gas exploration with China: reports

Japan is to announce on Wednesday an accord with China to jointly develop gas fields in the East China Sea, resolving a spat that was a thorn in relations of the two major energy importers, reports said.

Japan will announce the deal on the long-running spat at an evening press conference by Foreign Minister Masahiko Komura and Economy, Trade and Industry Minister Akira Amari, Jiji Press news agency and other media said.

No immediate confirmation was available from the government.

Japanese media said Japan would make an investment in China's already existing production at the Chunxiao gas field and win the right to resources in proportion with its financial contribution.

The exact level of Japanese investment is to be worked out later, they said.

Chunxiao, called Shirakaba by Japan, is located just west of the Japanese-proposed median line and Japan has earlier voiced worries that China's drilling may siphon gas from its own side.

China has said the gas field falls easily within its sovereign zone.

The Sankei daily also reported the two countries would make a 50-50 joint development of the Longjing field, called Asunaro by Japanese, which is the northernmost of four gas fields near the the median line.

Prime Minister Yasuo Fukuda said Tuesday the long-running row on gas fields would be resolved soon.

"There is a strong likelihood that this dispute will be resolved," Fukuda told news agencies from the Group of Eight rich nations ahead of their summit in Japan in July.

"The idea is to jointly excavate and drill and produce," he added.

Japan and China have been working to repair relations which have long been tense due in part to the legacy of Japanese imperialism.

China started drilling in the area in 2003, stirring tensions with Japan.