The Korea National Oil Corporation has inked a contract for a joint oil stockpiling project with a Chinese company.

According to the contract, China Oil will rent stockpiling facilities to store two-point-seven-million barrels of oil in Seosan, South Chungcheong province from October 1st for a one-year period.

The government plans to stockpile a total of 24-million-barrels of oil by 2008.

If the joint stockpiling project proceeds as planned, it would exert an indirect oil stockpiling effect on the local market.

Moreover, should more global oil firms use South Korea as a storage base, it would help the nation to emerge as an oil logistics hub of Northeast Asia.

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