Chunxiao/Shirakaba

Profile for Chunxiao/Shirakaba Oil and Gas Field

Location

The Chunxiao/Shirakaba Oil and Gas Field is located in the East China Sea, within the Chinese Exclusive Economic Zone (EEZ), approximately 4 kilometers to the west of the EEZ border claimed by Japan. The exact coordinates are 28.333, 124.911 (WGS 84).

Discovery and Development

The field was discovered in 1995 by the People's Republic of China. It is part of the Xihu Trough, which includes three other natural gas fields: Tianwaitian, Duanqiao, and Canxue. Production from the Chunxiao field began on January 28, 2006.

Operators and Owners

The field is operated by the Donghai Xihu Oil and Gas Operating Company. The owners are China National Offshore Oil Corporation (CNOOC Limited) and Sinopec, each holding a 50% stake. Initially, Unocal and Shell were involved in the project but withdrew in late 2004 due to high costs, unclear reserves, and the territorial dispute.

Reserves

• Natural Gas: Estimated reserves of 4774.2 million cubic meters (or approximately 168.6 billion cubic feet) as of 2008.
• Oil: Estimated reserves of 3.8 million barrels as of 2008.

Production

• Gas Production: Started in 2006, with production levels reported as 1900 million cubic meters per year in 2005 and 3321.5 million cubic meters per year in 2009.
• Oil Production: While the field primarily produces natural gas, it also has some oil production, though the oil reserves are significantly smaller compared to the gas reserves.

Territorial Dispute

The field is at the center of a territorial dispute between China and Japan. Japan claims that the field may be connected to reserves beyond the median line of the East China Sea, which is disputed. Despite this, in June 2008, China and Japan agreed to jointly develop the Chunxiao gas fields, although little progress has been made on joint development since then.

Joint Development Agreement

In 2008, China and Japan signed a Joint Energy Development Agreement that included the Chunxiao/Shirakaba field. The agreement aimed to explore four fields jointly, halt development in contested waters, and collaborate on joint surveys and investment. However, China began unilateral development of the Tianwaitian/Kashi field in 2009, which stirred protests from Japan.

Strategic Significance

The East China Sea, where the field is located, is a strategically important region due to its rich energy resources and its role as a maritime buffer between China, Japan, and other regional actors. The disputes over seabed resources, including the Chunxiao/Shirakaba field, are part of broader maritime and territorial issues in the region.

Security and Diplomatic Implications

The dispute over the Chunxiao/Shirakaba field has significant security and diplomatic implications. It has led to tensions between China and Japan, with Japan threatening to take China to the International Tribunal for the Law of the Sea if China proceeds with unilateral production. The United States, due to its security treaty with Japan, also has a vested interest in the resolution of this dispute.