CNOOC begins drilling

State-owned China National Offshore Oil Corp has begun tapping a natural gas field that has been subject to a dispute with Japan, the Wall Street Journal reported. China's biggest offshore oil and gas producer started production at the Chunxiao field on January 28 – ahead of schedule – a source told the newspaper. A round of talks on the long-running border dispute is soon to be held, which is why CNOOC had not announced the operation. The East China Sea field is in China's exclusive economic zone, but Japan is concerned its own resources may be threatened by the drilling near its waters.