China Launched Production on Disputable East China Sea Field

Chinese oil and gas giant CNOOC Ltd. has begun production in its East China Sea gas field, which has been the focus of a dispute with Japan, according to a statement posted the website of CNOOC's parent company.

"The first phase of Chunxiao gas field has fully entered operation," said Zhang Guobao, vice minister of the National Development and Reform Commission, the country's top economic planning agency. Zhang was quoted during a visit to the gas field last week.

In April the Chunxiao field had been producing around 250,000-300,000 cubic meters a day since January.
Since April, China and Japan have met six times to try to iron out their territorial dispute.

Ongoing construction of a pipeline to key population centers may be another reason for the Chunxiao field's slow development. When completed, the pipeline will link Ningbao port, which is at the end of the East China Sea undersea pipeline, to Hangzhou city in Zhejiang province, according to Zhejiang-based Xiaoshan Daily.