Japan yesterday approved a request by Teikoku Oil Co to drill for natural gas in the East China Sea along a disputed sea border with China, prompting Beijing to warn about the possibility of worsening ties.
Japanese Economy, Trade and Industry Minister Shoichi Nakagawa said Tokyo would allow test drilling east of the line that Japan considers its sea boundary with China -- a demarcation that Beijing disputes. The permit lasts for two years but can be extended for a total of eight years.
Tokyo's announcement came nearly three months after Teikoku Oil had asked for government permission in late April for exploration rights.
http://www.taipeitimes.com/News/front/archives/2005/07/15/2003263550