Text Only
Search

 
China, North Korea Strike Oil Exploration Deal


06 June 2006

China says it has reached a deal with North Korea to look for oil in the Yellow Sea. Chinese officials gave few details of the pact reached recently between Beijing and Pyongyang.

The deal underscores China's need to find new sources of oil to fuel its booming economy, and also its desire to strengthen trade ties with North Korea, which Beijing is trying to woo back to multi-party negotiations on nuclear disarmament.

Talks had been under way between Chinese and North Korean officials for several months before Chinese Foreign Ministry spokesman Liu Jianchao confirmed on Tuesday that they have struck a preliminary agreement.

"Through equal and friendly consultations, our two countries have reached an agreement to jointly develop the border sea area," said Liu. "Therefore, on the natural resources issue, agreement has been reached."

Liu said a more detailed agreement would come at an unspecified date.

The deal covers an area of the Yellow Sea near North Korea. China has already been working to develop offshore fields in the area on the Chinese side of the sea.

Analysts say an agreement would benefit impoverished North Korea, which they say does not have the resources or technology to carry out major oil exploration projects.

China has supplied a significant amount of fuel and food to its longtime ally, since North Korea's economy began to decline in the early 1990's. Beijing appears eager to prevent a total collapse in the North, which could result in a destabilizing flow of refugees into China.

Beijing has joined the United States, Japan, South Korea and Russia in trying to persuade Pyongyang to give up its nuclear weapons programs. Three years of talks, however, have made little progress.

emailme.gif E-mail This Article
printerfriendly.gif Print Version

  Top Story
US Army Charges Alleged Fort Hood Shooter with Premeditated Murder

  More Stories
Obama Promises Strategy, Clear Mission, Public Support For Troops  Audio Clip Available
Kremlin Calls for Sweeping Modernization of Russia  Audio Clip Available
Union Says Zimbabwe Farm Workers Worst Abused Sector in Past 10 Years  Video clip available
Obama Begins First Presidential Trip to Asia  Audio Clip Available
Obama to Hold Jobs Summit in December   Audio Clip Available  Video clip available
Reports: US Ambassador to Kabul Expresses Caution About More Troops  Audio Clip Available
APEC Ministers say Economic Recovery Fragile  Audio Clip Available
Clinton Vows Support for Philippine Typhoon  Recovery, Anti-Terrorism Fight  Audio Clip Available
US Leaders May Interact With Burmese at Singapore Summit  Audio Clip Available
N. Korea Says South Will Pay 'Expensive Price' for Naval Clash
China Rejects Human Rights Watch Report on Black Jails
Thasksin Delivers Speech in Phnom Penh
Sri Lanka Military Chief Resigns  Audio Clip Available
As Alleged Fort Hood Shooter Recovers, New Questions Arise  Video clip available
Pakistan Seeks Role in US-Afghan Policy
Obama's Middle East Strategy Stalls
Zimbabwe Land Seizures Reportedly Intensify  Audio Clip Available
First Recorded Dengue Fever Epidemic Hits Cape Verde  Audio Clip Available
Paisley, Swift Winners at CMA Awards  Audio Clip Available