Eric Watkins
Senior Correspondent
LOS ANGELES, Mar. 30 -- Japan's Nippon Oil Corp. said it will step up refining activity under a consignment agreement with the PetroChina Co. group, raising output next month by 30% to 40,000 b/d.
Under an agreement with PetroChina affiliate China Oil, Nippon Oil processes crude into fuel oil and diesel at six refineries in Japan for delivery to China.
The firms have cooperated in refining operations since 2004, renewing their contracts each fiscal year.
The first contract reached in July 2004 called for 20,000 b/d, with the figure increased to 30,000 b/d for fiscal 2005.
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