BEIJING: China National Offshore Oil Corp has started oil product exports, the company said on Friday, joining oil majors Sinopec and PetroChina to conduct overseas sales from its own refinery.
The sales by CNOOC are expected to drag on margins for oil products in Asia at a time when new refining capacity and upgrades have sharply increased supply in the region.
CNOOC, parent of China's top offshore oil producer CNOOC Ltd , loaded its first 12,000-tonne jet fuel cargo for export from its Huizhou refinery in the southern province of Guangdong on Friday morning, the company said on its website.
The cargo will supply Hong Kong airport.
The company will export more oil products from its 240,000-bpd Huizhou refinery later on, it said. CNOOC won approval in March from the National Development and Reform Commission to export oil products processed from imported crude oil, it added.
Industry sources have said CNOOC received a quota from the government to export about 100,000 tonnes of oil products in the second half of the year.
Under the quota, CNOOC, will be able to export diesel, kerosene, gasoline and naphtha depending on the market situation.
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