Japan warns China over disputed oil and gas reserves

Japan has warned China that it will take action if Beijing starts gas production in a disputed field in the East China Sea. This comes despite an agreement between the two countries to resolve the dispute by jointly developing gas fields. Japan now accuses China of drilling for gas in violation of the agreement. A Japanese foreign ministry spokesperson says the foreign minister Katsuya Okada has warned his Chinese counterpart Yang Jiechi at a meeting in Tokyo on Sunday that Japan could take a counter-action. But no further details have been released. It's estimated that there are net reserves in the disputed fields of 92 million barrels of oil equivalent, but there may also be larger hidden reserves.