N.Korea, China Strike Oil Development Deal

North Korea agreed with China over the weekend to jointly exploit offshore oilfields. The deal was signed after a meeting in Beijing and puts maritime disputes between the two countries to rest. Energy experts in China say the deal comes as no surprise as the two countries have already signed a series of deals for Chinese-funded projects.

The two countries are to explore and develop oil fields in the Yellow Sea. China's Vice Premier Zeng Peiyan signed the agreement with North Korea's Deputy Premier Ro Tu-chol, whose four-day visit to Beijing ends Tuesday. Neither Chinese nor North Korean news reports offered details of the agreement. The two countries have traditionally been strong allies.

But they reportedly disagree over the delineation of an area in the Yellow Sea that separates them. Chinese energy experts have previously said that those disagreements were stalling the development of oil fields in the Yellow Sea, but the need for energy has apparently prompted both sides to set those differences aside.

Chinese geologists estimate that offshore fields in the West Bay basin area off North Korea may contain about 22 billion barrels of oil and gas.

Arirang News