Nippon Oil Gives OK to INPEX-Teikoku Merger

Tokyo, Dec. 19 (Jiji Press)–Japan’s biggest oil distributor Nippon Oil Corp. said Monday it supports Teikoku Oil Co.’s plan to integrate operations with INPEX Corp. .

Nippon Oil is the top shareholder of Teikoku Oil.

Teikoku Oil and INPEX, both of which are oil and gas developers, announced in early November that they plan to merge their operations under a joint holding company in April 2006.

Nippon Oil said it is considering mutual shareholdings with the new holding company. Specifically, Nippon Oil plans to boost its equity stake in the holding firm to around 5 pct by June 2008, while the holding company plans to acquire some 1.5 pct of Nippon Oil’s outstanding shares by the same date.

In addition, Nippon Oil said it is considering jointly engaging in new oil development projects with Teikoku Oil and INPEX.END