Japan: Nippon Oil & PetroChina in Joint Venture
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Thursday, 08 May 2008 |
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Nippon Oil of Japan said it has agreed to form a refining joint venture with PetroChina to expand their alliance and take advantage of the growing demand in Asia.
Mr Shinji Nishio, President of Nippon Oil President told local media that the companies will consider jointly operating Nippon Oil's
115,000 barrel-a-day refinery in Osaka as part of the venture . Nippon Oil will hold a 51 percent
stake in the joint venture whcih should start by April 2009, he said.
Nippon Oil and PetroChina are working together to expand in
Asia and utilize the Japanese refiner's surplus capacity. Demand
is waning in Japan while increasing elsewhere in Asia, as
emerging economies such as China consume more oil products.
`This is the first step for us and PetroChina to cooperate
to do Asian business together,'' Nishio said. ``Our plan is to
turn the Osaka plant into a hub for exports.''
Shares of Nippon Oil jumped as much as 8.4 percent, or 60
yen, to 778 today and traded at 774 yen at market close in Tokyo,
their biggest gain in eight months. PetroChina declined 4.6
percent to HK$11.56 at 4 p.m. in Hong Kong. Under the agreement signed this week, Nippon Oil will operate the
Osaka plant while PetroChina will handle the purchase of crude
oil and sales of refined products.
The Osaka refinery has a capacity to export about 40,000
barrels a day of refined products, mainly gasoil and jet fuel,
Nippon Oil Director Mihio Ikeda said.
``This tie-up will allow us to secure routes so we can have
a steady export of fuels,'' Nishio said.
PetrolWorld 070508
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