PetroChina, Nippon Oil to form JV

China’s largest oil producer China National Petroleum Corporation (PetroChina) and Japan’s biggest refiner Nippon Oil Corporation plan to create a 49-51 oil refining venture in Japan, the first Sino-Japan refining joint venture, in line with an agreement signed on May 7. Nippon Oil President Shinji Nishio said that both sides were considering jointly operating an Osaka refinery, which is capable of producing 40,000 barrels of refined oil (mainly light diesel oil and jet fuel) every day, as part of the venture. The Chinese giant is to be responsible for buying crude oil and selling refined oil for the venture while the Japanese partner will be in charge of the operation, in a bid to make the venture a large-sized company serving the entire Asia-Pacific market. Nippon Oil Corp. has been refining oil for PetroChina since 2004 and is set to supply about 70,000 barrels of refined oil to PetroChina in fiscal year 2008. (May 9, 2008)