UPDATE 1-Exxon Japan group mulls secondary unit investment

* Exxon Japan group considers action to meet govt regulations

* Cutting crude refining capacity is also one option -exec
(Adds context)

TOKYO, Aug 13 (BestGrowthStock) – Exxon Mobil (XOM.N: ) Japan group
refiner TonenGeneral Sekiyu KK (5012.T: ) is considering investing
in secondary refining units or cutting its refining capacity to
meet government efficiency rules, the firm’s managing director W.
J. Bogaty said on Friday.

The government regulations would require all oil refiners in
Japan to raise the ratio of residue fluid catalytic cracking
units or cokers to total crude refining capacity.

“We are undertaking a very deep and very rigorous review of
all of our options,” Bogaty told reporters during the company’s
first-half earnings announcement.

“Those options extend anywhere from making investments to
closing our refinery capacity and to a combination of those
things. That analysis is extremely complex and we will take our
time.”

Exxon Japan group, which has 836,000 barrels per day of total
crude refining capacity, is the second-ranked refiner in Japan
and currently has a residue cracking ratio of less than 10
percent, meaning that it would have to improve that ratio by 45
percent by the end of March 2014.

The nation’s refiners are required to submit their plans for
improving the ratio to the Ministry of Economy, Trade and
Industry by Oct. 31.
(Reporting by Osamu Tsukimori; Editing by Edmund Klamann)

UPDATE 1-Exxon Japan group mulls secondary unit investment