Japan will prepare to grant exploratory drilling rights in disputed waters of the East China Sea adjacent to where China hopes to launch full-scale drilling for natural gas, industry minister Shoichi Nakagawa said Friday.

His comments came on the heels of an announcement that the Ministry of Economy, Trade and Industry has completed a geophysical survey that found that the two natural gas reserves China is currently developing extend into Japan's exclusive economic zone.

Unless Beijing releases data on the deposits it is tapping, Japan will conduct its own test drilling for oil and gas, he said.