Nippon Oil Gets Biggest-Ever Emission Rights From U.N.

Tokyo, Feb. 29 (Jiji Press)–Nippon Oil Corp. said Friday a carbon dioxide-cutting project in Vietnam has received the largest one-time issuance of emission rights from the United Nations.

The project, which aims to reduce emissions by recycling gas from the Rang Dong oil field off Vietnam, was given an issuance of 4.49 million tons in certified emissions reductions, or CER, for emission cuts for the four years through December 2005.

The CERs will be shared among the companies involved, including the Nippon Oil group and Vietnam Oil and Gas Corporation, the state- run oil firm known as Petrovietnam. The Nippon Oil group has a 46.5 pct stake in the oil field.

Over the 10 years ending 2011, the project is expected to be given a CER issuance totaling 8 million tons, Nippon Oil said.

In February 2006, the Rang Dong project was registered under the U.N. Clean Development Mechanism. The CDM allows firms in industrialized countries to acquire CERs in exchange for cooperating with emission reduction projects in developing countries.END

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