On May 7, China National Petroleum Corporation and Japan's Nippon OilCorporation signed a letter of intent in Tokyo in considering to create arefinery joint venture, which is capable of processing 115,000 barrels of crudeoil per day.
Headquartered in Tokyo, Nippon Oil is the largest petroleumcorporation in Japan. The refinery joint venture will be the largest cooperativeproject between China and Japan in the energy field.
CNPC signed anotheragreement with Nippon Oil on May 7. Under the agreement, the Japanese companywill refine 3.5 million tonnes of crude oil for CNPC in fiscal year of 2008.
Nippon Oil has undertaken oil refining services for CNPC since 2004 witha daily capacity of 20,000 barrels. At present, the dailyoil refining volume has increased to 70,000 barrels.