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          Japan approves oil drilling, China protests
          (Agencies)
          Updated: 2005-07-14 17:11

          TOKYO - Japan has given permission for the test-drilling of a potentially lucrative gas field in the East China Sea contested with Beijing, after talks on the dispute broke down amid deteriorating ties.


          China National Offshore Oil Corporation's (CNOOC) oil rigs in China's Bohai Sea is seen in this photograph taken July 7, 2004. [newsphoto/file]  
          China immediately protested the decision to let Teikoku Oil be the first Japanese company to explore the waters in the East China Sea.

          "In response to an application from Teikoku Oil, we have authorized the company to be granted test drilling rights," Minister of Economy, Trade and Industry Shoichi Nakagawa told a news conference.

          Japan said in April that it would accept bids to drill in the region, ending decades of hesitation over upsetting China. Relations between the two countries have seriously deteriorated this year over how they remember World War II.

          Teikoku Oil said it was notified it could explore three areas covering a total of 400 square kilometers (155 square miles) in the disputed sea area.
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