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[February 07, 2006]

U.N. certifies Nippon Oil's gas project in Vietnam as CDM project

(Kyodo News International (Tokyo) (KRT) Via Thomson Dialog NewsEdge) Feb. 7--TOKYO -- Nippon Oil Corp. said Tuesday its gas recovery and utilization project in the Rang Dong oil field off southern Vietnam has been approved by a relevant U.N. organ as a Clean Development Mechanism project to cut emissions of carbon dioxide under the 1997 Kyoto Protocol.

The Rang Dong CO2 Project is the first U.N.-authorized CDM project involving gas associated with production of crude oil, said the biggest oil distributor in Japan.

The project, which aims to reduce CO2 emissions by 6.77 million tons, or 677,000 tons per annum, over the 10 years from 2001 to 2011, is the world's largest CO2 emission reduction project certified by the CDM Executive Board, Nippon Oil added.

Under the Kyoto Protocol to fight global warming, the CDM mechanism allows companies in developed countries to obtain CO2 reduction certificates in exchange for helping reduce emissions of greenhouse gases in developing nations.

Operated by Japan Vietnam Petroleum Co., a Nippon Oil subsidiary, the gas recovery project got under way in December 2001.

While associated gas is usually flared, the project sends it through a specially built undersea pipeline to three power plants in Vietnam for use as fuel.

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