Kyokuto Petroleum Industries (KPI) is to cut its refining capacity at the Chiba refinery by 13%, equivalent to 23 000 bpd, on 31st March in order to meet norms on improving efficiency.
The Japanese government imposed a law in 2010 requiring decades old refineries to either scrap inefficient crude distillation units (CDUs) or invest in heavy residue cracking units by the end of March 2014 in order to better compete with Asian rivals.
The country’s only oil refining company has made a US$ 5 million loss for 2013. This compares to over US$ 31 million in profit for 2012.
New Zealand Refining Company chairman David Jackson says the result is disappointing. He says business conditions proved increasingly difficult, with market volatility and increasing competition in the Asia Pacific region.
The Federal Government and Republic of Namibia have proposed to construct a joint oil refinery.
The decision was reached during the two day official visit of President Goodluck Jonathan to Namibia at the invitation of his counterpart, President Hifikepunye Pohamba.
Sinopec has said that it will push ahead with a government driven agenda to open up state controlled industries this year.
The company and its peer, PetroChina Co. are seeking private investors for some units. Sinopec will sell as much as 30% of its oil retail business, in a sale Barclays Plc estimates could raise more than US$ 20 billion.
Edited from various sources by Emma McAleavey.
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