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China Orders Sinopec, Cnooc to Ensure Oil Supply to Quake Areas

By Josephine Lau

June 1 (Bloomberg) -- China has ordered China National Petroleum Corp., China Petroleum & Chemical Corp. and China National Offshore Oil Corp. to ensure oil supply after the nation's most powerful earthquake since 1950, the cabinet said.

China's coal-producing regions should also boost production to make up for output disruptions following the May 12 quake, the State Council said in a circular posted on the Chinese central government's Web site.

Chinese state-owned refiners are expanding output after the nation experienced its worst fuel shortage in more than two years in the second half of 2007. China Petroleum or Sinopec, as the nation's biggest oil refiner is known, has diverted gasoline and diesel supplies from southern and coastal regions to quake- hit Sichuan province and lifted rations on fuel sales as the recovery effort boosts demand, the company said on May 20.

The death toll from the quake rose to 69,016 as of mid-day today, with 368,545 injured and 18,830 still missing, Xinhua reported. The earthquake was the most powerful to hit China since a magnitude 8.6 quake struck Tibet in 1950, killing 1,526 people.

To contact the reporters on this story: Josephine Lau in Beijing at jlau22@bloomberg.net

Last Updated: June 1, 2008 06:24 EDT

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