Shenyang International Economic Technical Cooperation Co. Ltd. was identified as the firm investing in the oil exploration in Palau.
According to an internet news, lawmakers from the Taiwan opposition Democratic Progressive Party warned of such deal that Palau is making since it could be a start of a diplomatic relationship between China and Palau.
However, the company is actually interested in developing Ngardmau Free Trade Zone , not an oil project, according to President Johnson Toribiong.
He said this company interest in Ngardmau has not materialized. He said the alleged deal with the group is based on “false rumor.”
Palau Pacific Exploration (PPX) has secured a 1 million acre drilling concession on the North Block of Palau.
PPX is the company seeking investors to fund the exploration program.
The company is seeking investors to participate in a private placement to raise$40 million to fund a drilling program.
Jack Pierce, PPX coordinator however denied knowledge of such an agreement with the China firm. He said that the company has been talking to several firms based all over the world regarding investments in the oil exploration.
President Toribiong meanwhile in an interview on Friday said that there is another firm interested in investing in the oil exploration but it is a firm based in Hong Kong.
. The president said the government has sought the advice of the United States government regarding acceptance of such investments from Hong Kong.
He said he is still awaiting word from the U.S. government.
The said deal has caused controversy among Taiwan lawmakers.
Taiwan lawmaker Chen Ying stated in the article since diplomatic relations between countries is often preceded by economic cooperation, Taiwan should be especially careful about this development.
In the same article, Taiwan Foreign Minister Timothy Yang said relations between Taiwan and Palau were stable, and the Ministry of Foreign Affairs and the National Security Bureau would carefully monitor all relevant information.
In the same article, NSB Deputy Director Yen Meng-han has said “there was no evidence of imminent diplomatic recognition between China and Palau other than the oil cooperation project.”
Palau is among the six Pacific nations which has a diplomatic relationship with Taiwan.
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