Japan seeks oil reserves in SE Asia

The government of Japan is considering establishing oil storage facilities in Southeast Asian nations to help ensure a steady flow of oil to them and Japan in the event of regional oil shortage, according to Nihoin Keizai Shimbun daily.

Petroleum consumption is surging in Asia, deepening fears that Japan's oil supply could be threatened.

The ministry of economy, trade and industry has begun bilateral talks with officials from countries such as Malaysia and Thailand on the possibility of providing technical know-how and money to build storage facilities.

Details of the plan will be in a report to be drawn up this montyh by a panel of the ministry's Advisory Committee for Natural Resources and Energy.

Under a plan now being studied, Japan will offer to send experts to Thailand, which effectively has no oil reserve facilities.

Japan may also hold separate talks with Malaysia and Indonesia about the possibility of creating a temporary storage facility for emergency use.

Malaysia and Indonesia form the bulk of the Malacca Strait, a narrow corridor connecting the Pacific and Indian Oceans that has considerable strategic importance. (*)