OREANDA-NEWS. Cosmo Oil Co., Ltd. and TonenGeneral Sekiyu K.K. have, as previously announced, been discussing on collaboration to increase operational efficiency and optimization of their respective refineries in Chiba (Cosmo Oil Chiba refinery - capacity: 220,000 bbl/day; Chiba refinery of TonenGeneral Group company Kyokuto Petroleum Industries, Ltd. - capacity: 152,000 bbl/day; hereinafter "the two refineries"). The two companies today announce the conclusion of a Joint Venture Agreement for the implementation of the synergies.

The two companies will continue to discuss on further increasing the competitiveness of the two refineries on a global basis.

Main decisions
* Establishment in January 2015, of a joint organization called Keiyo Seisei JV G.K.
* Official agreement for installation of pipelines linking the two refineries
* Increased production efficiency through the joint organization with the integrated, comprehensive implementation of the production plans of the two refineries ahead of pipeline completion.

The optimization of facilities, including atmospheric distillation units, will also be discussed
* Annual synergy of 10 billion yen through the integration and connection of pipelines.