Beijing, Jan 12: China has suspended oil exports to neighbouring Japan due to a stalemate in sales negotiation, a report said here today. The sales talks were on hold as China, the world's second largest oil importer, demanded a price increase and a cut in volumes to justify exports from its aging Daqing oilfield, 'China Daily' quoted industrial and company officials as saying.
"Our price quota has not been replied yet, and we have stopped the January crude export," said a Petrochina official.
Petrochina, the owner of the Daqing field in northeast China, represented the Chinese government to sell the crude from Daqing, which is China's largest oilfield.
The official declined to reveal the price quote Petrochina has offered.
Earlier reports said China wanted to raise the premium for the crude to 6.30 USD a barrel over the average price of Indonesia's Minas and Cinta crude from a premium of just 45 cents per barrel in 2003.
Petrochina also told Japan to cut Daqing supply in 2004 to 500,000 tonnes from three million tonnes in 2003 as the output of Daqing is declining, the report said.
China started to export Daqing crude to Japan in 1978 under a long-term government-to-government agreement to promote bilateral trade.
Bureau Report