Chinese and Japanese companies sign energy deals

The deals were struck at a Japan-China energy seminar in Tokyo during the visit of Prime Minister Wen Jiabao of China.

Nippon Oil and China National Petroleum signed an accord for long-term cooperation, including overseas oil and natural gas resources development.

"The agreement will cover many things," the chairman of Nippon Oil, Fumiaki Watari, told reporters after the signing. "We will have to discuss specifics."

Watari said the deal might cover the East China Sea.

"Of course, our company has a block allocated there," Watari said on the sidelines of the seminar. He did not give further details.

Wen and Prime Minister Shinzo Abe of Japan agreed Wednesday to speed up talks over oil and gas fields in disputed waters in the East China Sea and to seek a report on ways to jointly develop the resources by autumn.

Japan and China disagree over the boundary between their exclusive marine economic zones in the East China Sea, and Japan objects to Chinese development of gas fields near the border.

Watari did not say if Nippon Oil's block was in the disputed waters.

China National Offshore Oil, or Cnooc confirmed for the first time Wednesday that it had begun producing gas at a field in the East China Sea despite Japan's objections. Tokyo fears the development might drain off its resources.

Nippon Oil also expects to expand bilateral trade in crude oil, oil products and liquefied petroleum gas.

Mitsui's British unit and Cnooc signed an accord on liquefied natural gas spot trading at the seminar, where Japanese and Chinese business and government officials gathered as Wen made his first visit to Japan.

A spokesman for Mitsui, Japan's second largest trading firm, declined to give details of the agreement with Cnooc, which he referred to as an end-user of liquefield natural gas.