OCR Text |
Show _ C-6 Honolulu Star-Bulletin Thursday, Sept. 24, 1 9 7 0 * ^ J China Sea Area Is Contested by Japan DP Wendell Phillips Gets Korea Oil Rights (C) AM'. Timt Svvirm SEOUL - Tha vSouth Korean government today awarded the Wendell Phillips Oil Co. of Honolulu an oil exploration concession in an East China Sea area that overlaps an area claimed by Japan. A formal agreement granting the right was signed here by the Korean minister of -nmmerce and industry, Lee Nak Sun, and the president of the American concern, Dr. Wendell Phillips. THE SEOUL government has already granted oil prospecting rights in six other continental shelf areas to Gulf Oil. Royal Dutch Shell and Texaco and Chevron of the U.S. Caltex group The companies are now conducting seismic surveys. Wendell Phillips won the concession in Block Seven, 27.000 square miles in size, which extends near Japan's Kyushu Island. The Nippon Oil Explorer, a subsidiary of a major Japanese- petroleum company, Nippon Oil, was reported te he planning te explore oil in the same general area in a joint venture with Texaco and Standard Oil of California. The Japanese government also claims the rights to part of another Korean-award area. Block Five, which is committed to the Caltex group and adjoins Block Seven. Japan has proposed to negotiate the dispute with the Korean government. JAPAN BASES Its claim on the fact that the two blocks are closer to Japan and Block Seven skirts two small Japanese-held islands. South Korea, h o w e v e r , says the areas are part of Korea's continental shelf because they are less than 220 yards (200 meters) deep and a sea valley is situated outside of them. Phillips said at a news conference following the signing today that he supported the Korean position as conforming to international practice The agreement calls for $500,000 to be paid by his company to the Korean government and $56,000 in annual educational grants. The eight-year exploration period may be extended by two years and, if oil is found. the company can produce oil for 30 years with 12 5 per cent of the sales paid in royalty to the Korean government Korean officials said the company will invest at least $10 million for exploration |