Taiwan says Kanematsu involved in Brunei refinery<\/p>\n
TAIPEI (Reuter): Taiwan monopoly Chinese Petroleum Corp said
\nyesterday it would form a joint venture with Japan's Kanematsu
\nCorp and the Brunei government to build Brunei's second oil
\nrefinery.<\/p>\n
\"Kanematsu is also in the project,\" a Chinese Petroleum
\nofficial told Reuters by telephone.<\/p>\n
Industry sources in Taipei said Kanematsu would build the
\nproposed US$1 billion refinery complex, which officials say will
\nhave daily production capacity of 60,000 barrels.<\/p>\n
Chinese Petroleum Corp, a state-run company, would sign a
\nmemorandum of understanding with Brunei's state petroleum bureau
\non July 23 to build the refinery plant, company officials said.
\nSigning for Chinese Petroleum would be its chairman, Lee Shu-
\nchiu, the company said.<\/p>\n
\"The chairman (Lee) will visit our Singapore office on July 17
\nand go to Brunei to sign the refinery memorandum on July 23,\" a
\nsenior Chinese Petroleum official told Reuters by telephone.<\/p>\n
Once the memorandum is signed, Chinese Petroleum and Kanematsu
\nwill have 18 months to complete a feasibility study, after which
\na letter of intent would be signed and the start of construction
\ncould be authorized, the official said.<\/p>\n
There were no estimates as to when the refinery might be
\ncompleted and enter production.<\/p>\n
Chinese Petroleum officials have estimated the joint-venture
\nproject was worth US$1 billion, but declined to give details.<\/p>\n
Chinese Petroleum officials said the integrated chemical
\ncomplex, once completed, would use Bruneian light sweet crude to
\nproduce 420,000 tons of p-xylene a year and 200,000 tons of
\nbenzene a year.<\/p>\n
The refinery's output would be earmarked mainly for export.
\nOil-rich Brunei, a southeast Asian sultanate of 270,000 people
\nthat shares the island of Borneo with Malaysia and Indonesia, has
\nonly one small refinery with a daily capacity of just 9,000
\nbarrels.<\/p>\n
That plant is operated by Brunei Shell Petroleum Co Bhd, an
\nequally owned joint venture between Royal\/Dutch Shell and the
\nBrunei government.<\/p>\n
In May, Brunei's Oil and Gas Agency signed a letter of intent
\nwith German state-owned engineering firm IAB to build a 160,000
\nbarrel-per-day refinery at cost of 2.6 billion marks (US$1.5
\nbillion).<\/p>\n
IAB has said a feasibility study for the project would be
\ncompleted by the end of 1997 and construction would take four and
\na half years.<\/p>\n
Chinese Petroleum said its project with Kanematsu was not
\nrelated to the German project.<\/p>\n
In 1996, Brunei produced about 165,000 barrels a day of crude
\nand has proven reserves of 1.4 billion barrels.<\/p>",
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