Nippon Oil Seeks Further Cooperation With Petronas

The largest oil and gas company in Japan, Nippon Oil Corporation is seeking further cooperation with Petronas as it believes that the latter has a bright future in the oil and gas industry.

"We see that Petronas has done very well in the oil and gas industry. That is why we want to expand our business with them, especially in the liquefied natural gas (LNG)," its supply and overseas business development's general manager, Yasushi Kono said.

Speaking to reporters on the sidelines of the 9th Annual Oil and Gas Conference Tuesday, he said that the company would continue to import gas from Petronas.

"We target that half of our energy production volume of 50 percent will come from Malaysia next year," he said.

Petronas has LNG plant in Bintulu, Sarawak.

Kono said Petronas, which has a stake in the oil company in Sudan, would provide great opportunity for Nippon Oil Corporation to further enhance its business in the overseas market.

Earlier, in his presentation on the "Oil Procurement from an End User's Standpoint," Kono said that he believed oil would continue to be a major energy resources with demand to grow dramatically in Asia.

He said that by 2010, the world oil demand was expected to grow by more than 14 million barrels per day while oil demand for Asia was likely to grow by more than 6.0 million barrels per day.

However, he said that Asia had to rely more on the outside supply sources to meet the growing demand, especially on the Middle East supply.

Kono said oil supply outside Asia was targeted to increase by 12 percent to 74 percent in 2010 compared with 62 percent in the year 2000.

Nippon Oil Corporation is involved in the refinery activity with the current refining capacity of 1.22 million barrels per day.