The government is expected to give Teikoku Oil Co. concessions in July to conduct experimental drilling in the East China Sea, Vice Economy, Trade and Industry Minister Hideji Sugiyama indicated Thursday.
The Economy, Trade and Industry Ministry began discussions earlier this month with the governors of Kagoshima and Okinawa, which have state-designated jurisdiction over the economically disputed area, and the governors are expected to present their views on the issue within a month, Sugiyama said.
Not long after talks with the governors come to an end, procedures for Teikoku Oil to acquire the test-drilling rights are expected to be completed.
On April 28, the oil company submitted applications to the central government for the test-drilling rights at three sites covering a combined 400 sq. km in the East China Sea, following METI's decision earlier that month to unfreeze their applications.
The sites are located just east of what Japan claims is the median line separating the 200-nautical mile exclusive economic zones of Japan and China in the East China Sea. A Chinese consortium has been exploring for natural gas in an area close to China's side of the line.