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Nippon Oil Not to Boost Stake in Teikoku Oil

Posted on: Wednesday, 30 November 2005, 12:00 CST

By Kyodo News International, Tokyo

Nov. 30--TOKYO -- Nippon Oil Corp. has no intention of boosting its equity stake in Teikoku Oil Co., which plans to merge with oil and gas exploration company Inpex Corp. in April 2006, Nippon Oil President Fumiaki Watari said Wednesday.

Even if Nippon Oil buys more Teikoku Oil shares, its stake "will only be reduced" in accordance to a merger ratio of Teikoku Oil and Inpex, Watari said at a press conference.

Nippon Oil, the biggest shareholder in Teikoku Oil with a stake of 20.4 percent, will study the appropriateness of the planned integration of operations between Teikoku Oil and Inpex, which was disclosed Nov. 5, he added.

On the question of whether Nippon Oil will buy shares in the new company to be created through the Teikoku Oil-Inpex merger, Watari said no decision has been made yet although "we may buy them if it is an excellent company." Watari also said the new company should engage in integrated business operations ranging from oil exploration to refining and sales.

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Copyright (c) 2005, Kyodo News International, Tokyo

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Source: Kyodo News International, Tokyo

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