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Idemitsu Kosan Co.

Idemitsu Kosan Co.

Industry: 
Energy
Symbol: 
TYO:5019
Country: 
Japan
Sources: 

“Japanese refiner Idemitsu Kosan Co said it will buy either no crude or a maximum of one cargo from Iran in the year through March 2015, a move that could keep at bay any potential U.S. pressure over oil shipments from the Islamic republic. Idemitsu, Japan's third-largest refiner, bought one cargo in the year through March this year, Taiji Hashidoko, manager of Investor Relations Office, said on Friday at an earnings briefing. He declined to reveal the volumes. One Middle East cargo is usually around 600,000 barrels, and Idemitsu has cut its Iranian crude volume for the year ended in March to around 2,000 barrels per day (bpd) from less than 10,000 bpd a year earlier, an industry source familiar with the matter said. ‘(Iran crude) accounts for less than 1 percent of our firm's purchase of crude,’ Hashidoko told reporters on the sidelines of its earnings announcement for the just ended business year. ‘It is not that we are currently considering active dealings with Iran.’ Idemitsu, which sold 516,000 bpd of oil products globally in the year ended March 31, did not reveal how much crude it bought during the business year. Hashidoko added that he has not yet received information that the company has extended an annual Iranian crude contract for this fiscal year, and added it would engage flexibly in dealing with Iran based on the policy of the Japanese government.” (Reuters, “Japan Idemitsu to buy no more than 1 Iran crude cargo this year,” 5/2/14)

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“Two Japanese buyers of Iranian crude, Idemitsu Kosan and Cosmo Oil, are unlikely to raise imports from the Middle Eastern country even after sanctions were eased as part of an initial deal on Tehran's disputed nuclear programme. Executives with the two refiners said on Tuesday they have no plans to increase their contract volumes following the November deal between world powers and Iran that allowed Tehran to keep oil exports at around 1 million barrels per day (bpd), about half of pre-sanction levels…Idemitsu has already cut its Iranian crude contract volume for the year ending March 31 to 5,000 barrels per day (bpd) from 7,000 bpd a year ago, but it has no plans to halt its Iranian imports and end its decades-old relationship with Tehran. The reduced amount is the minimum level for purchases to make commercial sense, Idemitsu President Takashi Tsukioka told Reuters at a New Year gathering for Japan's oil industry." (Reuters, “Japan's Idemitsu, Cosmo unlikely to raise Iranian crude imports,” 1/7/14)

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"Japan will load its first Iranian crude cargo backed by sovereign guarantees since sanctions disrupted coverage in the international reinsurance market.

JX Nippon Oil & Energy Corp. and Idemitsu Kosan Co. will load about 1.7 million barrels of Iranian crude on the very large crude carrier Ryuho Maru on about July 20 at Kharg Island, the country’s biggest oil-export terminal, according to three officials from the refiners and Japan’s trade ministry. The tanker, owned by Iino Kaiun Kaisha Ltd. , will be backed by the Japanese state, they said, asking not to be identified because the information is confidential.

Japan’s Iranian crude imports will fall in July because refiners were unsure whether the sovereign insurance would be available when they planned July-loading schedules last month, the officials said. Japan’s parliament passed a bill on June 20 to provide $7.6 billion of guarantees to tanker owners that carry Iranian oil. European Union sanctions, introduced as an attempt to persuade Iran to halt its nuclear program, took effect July 1." (Bloomberg, "Japan Set To Load First Iran Crude With Sovereign Insurance," 7/13/12)

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"Japanese oil refiner Idemitsu Kosan Co has renewed its annual crude oil purchase deal withIran but cut the volume in line with its peers to comply with U.S. sanctions against the Islamic nation, industry sources said on Friday... Idemitsu had a term Iranian crude contract worth about 7,000 barrels per day for the financial year that ended in March, the sources estimated. The volume had been cut for the new contract but the size of the cut was unclear, they said. Idemitsu Chairman Akihiko Tembo said in March that the Japanese government probably wanted his firm to continue cutting Iranian crude imports at the same rate as previously, which was by 10 to 20 percent a year... Idemitsu does not release its crude import volumes, but it processed 27.7 million kilolitres (476,000 barrels per day) of crude in 2011/12, a spokesman said. If the imports were the same as its crude refining, the company's Iran imports would be equal to 4,760-9,520 bpd. Idemitsu has four refineries in Japan with total crude refining capacity of 640,000 bpd." (Reuters, "Japan's Idemitsu renews Iran oil deal, cuts volume," 5/22/2012)

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"Japanese refiners will cut Iranian crude imports yet again in April as they shy away from renewing annual contracts, showing continued commitment to U.S.-led sanctions over Tehran's nuclear programme.  Japan, the world's third largest oil consumer, has strongly backed calls to cut Iranian oil imports and earlier reductions were hailed by its top business and military ally, the United States, as an example to other countries...JX Nippon Oil & Energy Corp, Japan's biggest oil refiner, has not renewed a contract to buy 10,000 barrels per day (bpd) of Iranian crude, which expired in March, the sources said, declining to be identified as they are not authorised to talk to the media.  Apart from JX, at least three other Japanese firms, including Idemitsu Kosan Co and Cosmo Oil Co, which together buy around 40,000 barrels per day, will not lift any Iranian crude in April, industry sources said. These three do not lift Iranian oil every month."  (Reuters, "Japan refiners deepen Iran crude import cuts,"  4/4/12)

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"At least three Japanese firms including two oil refiners will not lift any Iranian crude in April as the third-biggest buyer of Iranian oil comes under pressure from the United States to curtail purchases, industry sources said on Monday.  Japan has been cutting Iran imports even as its imports have been rising on demand related to reconstruction and the switching off of all but one of its nuclear reactors following the March 2011 earthquake and Fukushima nuclear disaster.  The cut in Iranian crude imports comes at a time of lower demand in Asia as refiners shut their units for maintenance in the second quarter.  Japan's third-biggest refiner, Idemitsu Kosan Co, which lifted about 7,000 barrels per day (bpd) of Iran crude up to the end of March, is seen as one of the refiners that could cut the purchases as it has not yet renewed its annual contract with Iran, sources familiar with the matter said." (Reuters, "Some Japan firms to skip Iran crude buying in April," 4/2/12)

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"Some processors, including Japan’s Idemitsu Kosan Co. and Taiwan’s CPC Corp., have cut the amount they buy from Iran." (Businessweek, "Asian Refiners Seek Iran Oil Alternatives on Disruption Threat," 1/6/2012)

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Idemitsu Kosan Co. engages primarily in oil refining and petroleum products, producing and sells oils, petroleum products and petrochemicals. (Company Website "About Idemitsu")

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Idemitsu Kosan Co. is Japan's second-largest petroleum refiner. (Bloomberg, “Idemitsu Raises 109.4 Billion Yen in Oil Refiner IPO (Update2),” October 16, 2006.)

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Fortune Global 500 2008 ranks the company as the 262nd largest company in the world by revenue. (Fortune Magazine, "Global 500 2008: Industry: Petroleum Refining," July 21, 2008.)

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As of April 2010, Idemitsu Kosan imports 12 thousand barrels of crude oil per day from Iran. (Reuters, "Iran’s Crude Oil Buyers in Europe, Asia," April 18 2010)

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On the company website, Tehran is marked on a map of global offices in the Middle East. (Company website, “Global Offices - Middle East”)