SE Asia may join plan to build oil stockpiles

Southeast Asian nations including the region's biggest oil exporters Indonesia and Malaysia may join Japan's plan to build up an Asian stockpile of the fuel for use in emergencies, Japan's government was quoted by Bloomberg as saying.

The plan will be considered by oil ministers from the Association of Southeast Asian Nations, Japan, South Korea and China at a meeting in Malaysia in February, said Toshikazu Masuyama, director of petroleum policy planning in Japan's trade ministry.

``Oil prices are at high levels and there are uncertainties in Iraq,'' Masuyama said. ``There could be an energy crisis in Asia which needs to be addressed.''

The Philippines offered the use of its oil tanks at a former U.S. military base at Subic Bay to store the region's inventories, he said. Japan and Korea, the only Asian countries with emergency oil reserves, offered to help in building up the Asian stockpile. China and Thailand already have plans to build national emergency reserves.

The Association of Southeast Asian Nations, or Asean, groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

The Philippines wants Asean to utilize its existing facilities, that can accommodate supertankers, Masuyama said, citing Philippines government officials.

Japan's trade minister Takeo Hiranuma made the proposal at the first meeting of energy ministers of Asean, China, Japan and Korea.

``Japan has had strategic reserves for 35 years,'' Masuyama said. ``Japan asked other Asian nations please learn our lessons from it.''

The meeting took place during the International Energy Forum in Osaka, Japan.(*)