Idemitsu Kosan
Encyclopedia
is a Japanese petroleum company. It owns and operates oil platform
s, refineries
and produces and sells petroleum, oils and petrochemical
products products.
Idemitsu is the second largest petroleum refiner in Japan, after Nippon Oil
. It is ranked as the 262nd largest company in the world by revenue in Fortune Global 500
2008. It is number 26 in petroleum refining. Only publicly traded since 2006, Idemitsu Kosan is not listed on the Nikkei 225
stock index or the Topix
100, but instead in Topix Mid 400.
founded in 1911, selling lubricant oil for Nippon Oil
in Moji
, northern Kyushu. He expanded to selling fuel oil for fishing boats in Shimonoseki.
After success in Japan, Idemitsu & Co. expanded to Manchuria
(China) in 1914 where the Japanese-owned South Manchuria Railroad Co. Ltd.
was a major customer of lubricant. A branch was opened in Dalian
, Northeast China and Idemitsu attempted to enter the Chinese market that was dominated by western companies like Standard Oil
and the Asiatic Petroleum Company
(a Shell
subsidiary). The company extended through northern China and into Korea
and Taiwan
.
After the Japanese invasion of Manchuria in 1932 the oil trade became government controlled and Idemitsu was forced to scale back. Instead he went into transport by oil tanker
. In 1940 the headquarters were moved to Tokyo and the name changed to the current Idemitsu Kosan K.K. (Kabushiki Kaisha, stock company). With the Japanese military expansion and United States joining the Pacific War
the government took control of all industries.
After the war Idemitsu Kosan lost its overseas trade with the Allied occupation of Japan. It was among the ten petroleum suppliers selected by the Ministry of International Trade and Industry
(MITI) and cut its ties with Nippon Oil
. Idemitsu began importing naphtha
(an intermediate oil product) first from the United States and later from Venezuela
and Iran
. The protectionist Oil Industry Law helped Idemitsu against foreign competition in Japan, but also made owning its own refineries
important. Idemitsu's first Tokuyama Refinery opened in 1957. This was followed by the Chiba oil refinery in 1963, Hyogo oil refinery in 1970, the Hokkaido oil refinery in 1973, and the Aichi oil refinery in 1975.
In 1953 Idemitsu sent its large tanker Nisshomaru to Iran
to purchase oil. Iranian prime minister Mohammed Mosaddeq has recently nationalized the oil fields and was under British-led embargo (Abadan Crisis
). Idemitsu managed to buy the oil at 30% below market price, but displeased the British. This was popular with the Japanese public, but got Idemitsu in conflict with the Japanese government and MITI. Later the same year was the 1953 Iranian coup d'état. In the 1960s, Idemitsu imported crude oil from Russia
. Again it got a good price at 40% below market value, but angered the United States who decided to boycott Idemitsu when buying fuel for its military jets in Japan. Idemitsu called the boycott "an odd Christmas gift," but "utterly negligible." In 1978 it broke off contracts with the Soviet Union.
The company also came in conflict with the Petroleum Association of Japan
which was set up by MITI to restrict production and Idemitsu even left the organization. In 1965 the seamens union went on strike, the first of its kind in Japan. This led to petroleum shortages and Idemitsu then ignored the quotas and produced at full speed. When the price control and production quotas were removed in 1966, Idemitsu rejoined the PAJ. To please the MITI Sazō Idemitsu's younger brother Keisuke Idemitsu took over as company president, while Sazō became chairman of the board, keeping the actual control
The company continued it Vertical integration
strategy of controlling the whole supply chain with more tankers and opening petrol depots and warehouses. In 1976 it started drilling for oil and gas in the offshore Aga Field in the Niigata Prefecture
(Sea of Japan
). Commercial production began in 1984. Idemitsu took interest in foreign oil fields, and in 1987 it started an oil field in southeast Turkey together with Finnish
company Neste Oy. Idemitsu acquired stake in Norwegian Snorre oil field
and in Australia, as well as participating in oil drilling around the world.
The company diversified into coal, importing from Australia and bought mines in Muswellbrook, New South Wales
and Ebenezer, Queensland
. It became the largest coal mining company in Japan and developed the Coal Cartridge System for small users. It also worked on geothermal power
experiments and uranium mining
in Canada together with Cameco
and Cogema. The sharp 1985 price drop on oil
made Idemitsu's non-oil operations less profitable.
Japanese import restrictions on oil once again came under debate. Like in 1962 Idemitsu favored opening up to foreign competition, in opposition to most of the Japanese oil industry. The Japanese government eventually settled on a compromise that would slowly open for free importation and remove production quotas on refineries.
In the 1990s, Idemitsu began opening service stations outside Japan, in Portugal
and Puerto Rico
, as well as a lubricant factory in the United States. Oil industry deregulation took big leaps with the abolishment of the Special Petroleum Law and self-service pumps became legal. Towards the end of the 1990s, the demand in Japan decreased due to the long economic crisis. The oil industry was too large and many companies merged. At the turn of the century, Idemitsu Kosan was the only major oil refining company in Japan that had not merged. The company was entirely held by the Idemitsu family and company employees.
In 2006 Idemitsu Kosan became publicly traded on the Tokyo Stock Exchange
after an initial public offering
(IPO), raising 109.4 billion yen.
The liquefied petroleum gas (LPG) subsidiaries of Idemitsu Kosan and Mitsubishi
merged on April 1, 2006 to form the .
oil fields in the North Sea
(North Sea oil
). The first and largest Snorre oil field
has been followed by several more. In the Sea of Japan
, Idemitsu has oil platform
s in Niigata prefecture
near Aga
and Iwafune
, but the production is small. There are also exploration projects in Vietnam
, Thailand
and Cambodia
. In Vietnam, the exploration is together with Russia
n Zarubezhneft
and the Vietnam Oil & Gas Group (Petro Vietnam).
Idemitsu Kosan owns 12 oil tanker
s for international use.
The Hyogo and Okinawa refineries were closed in 2003 after an agreement that Nippon Oil
would supply Idemitsu Kosan with 40000 oilbbl/d of petroleum products.
In total there are 30 operating refineries in Japan with total capacity of 4.83 Moilbbl/d, giving Idemitsu Kosan a 13% share of the refining capacity. The company claims between 14% and 34% market share for different products.
Idemitsu Kosan is planning to build the Nghi Son Refinery
in Vietnam
in a joint venture with Kuwait Petroleum International, Vietnamese state owned PetroVietnam
and Mitsui Chemicals
. With construction planned to start in 2010, it would be ready in 2013 and become the second in Vietnam after the Dung Quat Refinery
. Idemitsu Kosan owns a 35.1% stake in the $6 billion, 200000 oilbbl/d refinery. Idemitsu has also opened an office in Hanoi
and is considering using the refinery as a base for expanding into Vietnam and surrounding countries.
Idemitsu operates 5,250 service station
s, many under the Apollo brand.
and propylene
, and aromatics like benzene
, para-xylene and styrene monomer. It is also a supplier of plastics for uses such as CD pressing and circuit boards. The two naphtha
crackers
can produce up to 997,000 tonnes of ethylene per year.
Lubricant
s, Idemitsu's first product is a major area. It also produces fluorescent materials for OLED displays. A joint venture with German company BASF
, BASF Idemitsu Co. Ltd., produces 1,4-Butanediol
for the Japanese market at Idemitsu's Chiba plant. Idemitsu also produces some medical drugs.
Oil platform
An oil platform, also referred to as an offshore platform or, somewhat incorrectly, oil rig, is a lаrge structure with facilities to drill wells, to extract and process oil and natural gas, and to temporarily store product until it can be brought to shore for refining and marketing...
s, refineries
Refinery
A refinery is a production facility composed of a group of chemical engineering unit processes and unit operations refining certain materials or converting raw material into products of value.-Types of refineries:Different types of refineries are as follows:...
and produces and sells petroleum, oils and petrochemical
Petrochemical
Petrochemicals are chemical products derived from petroleum. Some chemical compounds made from petroleum are also obtained from other fossil fuels, such as coal or natural gas, or renewable sources such as corn or sugar cane....
products products.
Idemitsu is the second largest petroleum refiner in Japan, after Nippon Oil
Nippon Oil
The , or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including fuels and lubricants; and other energy-related activities.Its products are sold under the brand...
. It is ranked as the 262nd largest company in the world by revenue in Fortune Global 500
Fortune Global 500
The Fortune Global 500 is a ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by Fortune magazine....
2008. It is number 26 in petroleum refining. Only publicly traded since 2006, Idemitsu Kosan is not listed on the Nikkei 225
Nikkei 225
The , more commonly called the Nikkei, the Nikkei index, or the Nikkei Stock Average , is a stock market index for the Tokyo Stock Exchange . It has been calculated daily by the Nihon Keizai Shimbun newspaper since 1950. It is a price-weighted average , and the components are reviewed once a year...
stock index or the Topix
TOPIX
Tokyo stock Price IndeX, commonly known as TOPIX, along with the Nikkei 225, is an important stock market index for the Tokyo Stock Exchange in Japan, tracking all domestic companies of the exchange's First Section. It is calculated and published by the TSE...
100, but instead in Topix Mid 400.
History
Sazō IdemitsuSazo Idemitsu
was a Japanese businessman and founder of the petroleum company Idemitsu Kosan. He was also an art collector, especially fond of Sengai Gibon.- References :...
founded in 1911, selling lubricant oil for Nippon Oil
Nippon Oil
The , or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including fuels and lubricants; and other energy-related activities.Its products are sold under the brand...
in Moji
Moji-ku, Kitakyushu
is a ward of Kitakyūshū, Fukuoka Prefecture, Japan. It is the former city of Moji which was one of five cities merged to create Kitakyūshū in 1963. It faces the city of Shimonoseki across the Kanmon Straits between Honshū and Kyūshū....
, northern Kyushu. He expanded to selling fuel oil for fishing boats in Shimonoseki.
Manchuria
Manchuria is a historical name given to a large geographic region in northeast Asia. Depending on the definition of its extent, Manchuria usually falls entirely within the People's Republic of China, or is sometimes divided between China and Russia. The region is commonly referred to as Northeast...
(China) in 1914 where the Japanese-owned South Manchuria Railroad Co. Ltd.
South Manchuria Railway
The , and operated within China in the Japanese-controlled South Manchuria Railway Zone. The railway itself ran from Lüshun Port at the southern tip of the Liaodong Peninsula to Harbin, where it connected to the Chinese Eastern Railway.-History:...
was a major customer of lubricant. A branch was opened in Dalian
Dalian
Dalian is a major city and seaport in the south of Liaoning province, Northeast China. It faces Shandong to the south, the Yellow Sea to the east and the Bohai Sea to the west and south. Holding sub-provincial administrative status, Dalian is the southernmost city of Northeast China and China's...
, Northeast China and Idemitsu attempted to enter the Chinese market that was dominated by western companies like Standard Oil
Standard Oil
Standard Oil was a predominant American integrated oil producing, transporting, refining, and marketing company. Established in 1870 as a corporation in Ohio, it was the largest oil refiner in the world and operated as a major company trust and was one of the world's first and largest multinational...
and the Asiatic Petroleum Company
Asiatic Petroleum Company
Asiatic Petroleum Company was a joint venture between the Shell and Royal Dutch oil companies founded in 1903. It operated in Asia in the early twentieth century. The corporate headquarters were on The Bund in Shanghai, China. The division tested the limits of corporate liability in the Lennard's...
(a Shell
Royal Dutch Shell
Royal Dutch Shell plc , commonly known as Shell, is a global oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the fifth-largest company in the world according to a composite measure by Forbes magazine and one of the six...
subsidiary). The company extended through northern China and into Korea
Korea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...
and Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
.
After the Japanese invasion of Manchuria in 1932 the oil trade became government controlled and Idemitsu was forced to scale back. Instead he went into transport by oil tanker
Oil tanker
An oil tanker, also known as a petroleum tanker, is a merchant ship designed for the bulk transport of oil. There are two basic types of oil tankers: the crude tanker and the product tanker. Crude tankers move large quantities of unrefined crude oil from its point of extraction to refineries...
. In 1940 the headquarters were moved to Tokyo and the name changed to the current Idemitsu Kosan K.K. (Kabushiki Kaisha, stock company). With the Japanese military expansion and United States joining the Pacific War
Pacific War
The Pacific War, also sometimes called the Asia-Pacific War refers broadly to the parts of World War II that took place in the Pacific Ocean, its islands, and in East Asia, then called the Far East...
the government took control of all industries.
After the war Idemitsu Kosan lost its overseas trade with the Allied occupation of Japan. It was among the ten petroleum suppliers selected by the Ministry of International Trade and Industry
Ministry of International Trade and Industry
The Ministry of International Trade and Industry was one of the most powerful agencies of the Government of Japan. At the height of its influence, it effectively ran much of Japanese industrial policy, funding research and directing investment...
(MITI) and cut its ties with Nippon Oil
Nippon Oil
The , or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including fuels and lubricants; and other energy-related activities.Its products are sold under the brand...
. Idemitsu began importing naphtha
Naphtha
Naphtha normally refers to a number of different flammable liquid mixtures of hydrocarbons, i.e., a component of natural gas condensate or a distillation product from petroleum, coal tar or peat boiling in a certain range and containing certain hydrocarbons. It is a broad term covering among the...
(an intermediate oil product) first from the United States and later from Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
and Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
. The protectionist Oil Industry Law helped Idemitsu against foreign competition in Japan, but also made owning its own refineries
Oil refinery
An oil refinery or petroleum refinery is an industrial process plant where crude oil is processed and refined into more useful petroleum products, such as gasoline, diesel fuel, asphalt base, heating oil, kerosene, and liquefied petroleum gas...
important. Idemitsu's first Tokuyama Refinery opened in 1957. This was followed by the Chiba oil refinery in 1963, Hyogo oil refinery in 1970, the Hokkaido oil refinery in 1973, and the Aichi oil refinery in 1975.
In 1953 Idemitsu sent its large tanker Nisshomaru to Iran
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
to purchase oil. Iranian prime minister Mohammed Mosaddeq has recently nationalized the oil fields and was under British-led embargo (Abadan Crisis
Abadan Crisis
The Abadan Crisis occurred from 1951 to 1954, after Iran nationalised the Iranian assets of the Anglo-Iranian Oil Company and expelled Western companies from oil refineries in the city of Abadan .-Prelude:...
). Idemitsu managed to buy the oil at 30% below market price, but displeased the British. This was popular with the Japanese public, but got Idemitsu in conflict with the Japanese government and MITI. Later the same year was the 1953 Iranian coup d'état. In the 1960s, Idemitsu imported crude oil from Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
. Again it got a good price at 40% below market value, but angered the United States who decided to boycott Idemitsu when buying fuel for its military jets in Japan. Idemitsu called the boycott "an odd Christmas gift," but "utterly negligible." In 1978 it broke off contracts with the Soviet Union.
The company also came in conflict with the Petroleum Association of Japan
Petroleum Association of Japan
The is composed of 18 refiners and primary distributors in Japan. It was incorporated in November 1955. It deals with the refining and marketing of petroleum products...
which was set up by MITI to restrict production and Idemitsu even left the organization. In 1965 the seamens union went on strike, the first of its kind in Japan. This led to petroleum shortages and Idemitsu then ignored the quotas and produced at full speed. When the price control and production quotas were removed in 1966, Idemitsu rejoined the PAJ. To please the MITI Sazō Idemitsu's younger brother Keisuke Idemitsu took over as company president, while Sazō became chairman of the board, keeping the actual control
Vertical integration
In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies in a supply chain are united through a common owner. Usually each member of the supply chain produces a different product or service, and the products combine to...
strategy of controlling the whole supply chain with more tankers and opening petrol depots and warehouses. In 1976 it started drilling for oil and gas in the offshore Aga Field in the Niigata Prefecture
Niigata Prefecture
is a prefecture of Japan located on the island of Honshū on the coast of the Sea of Japan. The capital is the city of Niigata. The name "Niigata" literally means "new lagoon".- History :...
(Sea of Japan
Sea of Japan
The Sea of Japan is a marginal sea of the western Pacific Ocean, between the Asian mainland, the Japanese archipelago and Sakhalin. It is bordered by Japan, North Korea, Russia and South Korea. Like the Mediterranean Sea, it has almost no tides due to its nearly complete enclosure from the Pacific...
). Commercial production began in 1984. Idemitsu took interest in foreign oil fields, and in 1987 it started an oil field in southeast Turkey together with Finnish
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...
company Neste Oy. Idemitsu acquired stake in Norwegian Snorre oil field
Snorre oil field
Snorre is an oil and gas field in the Tampen area in the southern part of the Norwegian Sea. The sea depth in the area is . Snorre is operational since August 1992. It was the first field developed by Saga Petroleum.-Production:...
and in Australia, as well as participating in oil drilling around the world.
The company diversified into coal, importing from Australia and bought mines in Muswellbrook, New South Wales
Muswellbrook, New South Wales
Muswellbrook, a corruption of 'Muscle Brook', is a town and Local Government Area in New South Wales, Australia. The original spelling and etymology of the town's name is a matter of some debate...
and Ebenezer, Queensland
Ebenezer, Queensland
Ebenezer is a suburb of Ipswich, Queensland, Australia.The origin of the suburb name is from a Hebrew word meaning rock of faith. - References :...
. It became the largest coal mining company in Japan and developed the Coal Cartridge System for small users. It also worked on geothermal power
Geothermal power
Geothermal energy is thermal energy generated and stored in the Earth. Thermal energy is the energy that determines the temperature of matter. Earth's geothermal energy originates from the original formation of the planet and from radioactive decay of minerals...
experiments and uranium mining
Uranium mining
Uranium mining is the process of extraction of uranium ore from the ground. The worldwide production of uranium in 2009 amounted to 50,572 tonnes, of which 27% was mined in Kazakhstan. Kazakhstan, Canada, and Australia are the top three producers and together account for 63% of world uranium...
in Canada together with Cameco
Cameco
Cameco Corporation is the world's largest publicly traded uranium company, based in Saskatoon, Saskatchewan. In 2009, it was the world's second largest uranium producer, accounting for 16% of world production.-History:...
and Cogema. The sharp 1985 price drop on oil
1985 world oil market chronology
*January: Nine OPEC members adjust prices to cut gap between light and heavy crudes from $4 to $2.40 per barrel. Saudi light price cut one dollar to $28 per barrel.*March 11–19: Iranian offensive; heavy casualties....
made Idemitsu's non-oil operations less profitable.
Japanese import restrictions on oil once again came under debate. Like in 1962 Idemitsu favored opening up to foreign competition, in opposition to most of the Japanese oil industry. The Japanese government eventually settled on a compromise that would slowly open for free importation and remove production quotas on refineries.
In the 1990s, Idemitsu began opening service stations outside Japan, in Portugal
Portugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
and Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
, as well as a lubricant factory in the United States. Oil industry deregulation took big leaps with the abolishment of the Special Petroleum Law and self-service pumps became legal. Towards the end of the 1990s, the demand in Japan decreased due to the long economic crisis. The oil industry was too large and many companies merged. At the turn of the century, Idemitsu Kosan was the only major oil refining company in Japan that had not merged. The company was entirely held by the Idemitsu family and company employees.
In 2006 Idemitsu Kosan became publicly traded on the Tokyo Stock Exchange
Tokyo Stock Exchange
The , called or TSE for short, is located in Tokyo, Japan and is the third largest stock exchange in the world by aggregate market capitalization of its listed companies...
after an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO), raising 109.4 billion yen.
The liquefied petroleum gas (LPG) subsidiaries of Idemitsu Kosan and Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...
merged on April 1, 2006 to form the .
Oil extraction and shipping
The daughter company Idemitsu Oil & Gas Co., Ltd. produces about 30000 barrels (4,769.6 m³) of crude oil per day. The primary sources is Idemitsus stake in NorwegianNorway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
oil fields in the North Sea
North Sea
In the southwest, beyond the Straits of Dover, the North Sea becomes the English Channel connecting to the Atlantic Ocean. In the east, it connects to the Baltic Sea via the Skagerrak and Kattegat, narrow straits that separate Denmark from Norway and Sweden respectively...
(North Sea oil
North Sea oil
North Sea oil is a mixture of hydrocarbons, comprising liquid oil and natural gas, produced from oil reservoirs beneath the North Sea.In the oil industry, the term "North Sea" often includes areas such as the Norwegian Sea and the area known as "West of Shetland", "the Atlantic Frontier" or "the...
). The first and largest Snorre oil field
Snorre oil field
Snorre is an oil and gas field in the Tampen area in the southern part of the Norwegian Sea. The sea depth in the area is . Snorre is operational since August 1992. It was the first field developed by Saga Petroleum.-Production:...
has been followed by several more. In the Sea of Japan
Sea of Japan
The Sea of Japan is a marginal sea of the western Pacific Ocean, between the Asian mainland, the Japanese archipelago and Sakhalin. It is bordered by Japan, North Korea, Russia and South Korea. Like the Mediterranean Sea, it has almost no tides due to its nearly complete enclosure from the Pacific...
, Idemitsu has oil platform
Oil platform
An oil platform, also referred to as an offshore platform or, somewhat incorrectly, oil rig, is a lаrge structure with facilities to drill wells, to extract and process oil and natural gas, and to temporarily store product until it can be brought to shore for refining and marketing...
s in Niigata prefecture
Niigata Prefecture
is a prefecture of Japan located on the island of Honshū on the coast of the Sea of Japan. The capital is the city of Niigata. The name "Niigata" literally means "new lagoon".- History :...
near Aga
Aga, Niigata
is a town located in Higashikanbara District, Niigata Prefecture, Japan. It has an area of 952.88 km² and a population of 13,865 as of April 1, 2008...
and Iwafune
Iwafune District, Niigata
is a district located in Niigata, Japan.As of May 1, 2008, the district has an estimated population of 7,137. The total area is 309.47 km².The district currently has two villages.* Awashimaura* Sekikawa...
, but the production is small. There are also exploration projects in Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
and Cambodia
Cambodia
Cambodia , officially known as the Kingdom of Cambodia, is a country located in the southern portion of the Indochina Peninsula in Southeast Asia...
. In Vietnam, the exploration is together with Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n Zarubezhneft
Zarubezhneft
JSC Zarubezhneft is a Russian state-controlled oil company based in Moscow that specializes in exploration, development and operation of oil and gas fields outside Russian territory....
and the Vietnam Oil & Gas Group (Petro Vietnam).
Idemitsu Kosan owns 12 oil tanker
Oil tanker
An oil tanker, also known as a petroleum tanker, is a merchant ship designed for the bulk transport of oil. There are two basic types of oil tankers: the crude tanker and the product tanker. Crude tankers move large quantities of unrefined crude oil from its point of extraction to refineries...
s for international use.
Refining
Idemitsu owns four refineries:- Hokkaido Refinery, HokkaidoHokkaido, formerly known as Ezo, Yezo, Yeso, or Yesso, is Japan's second largest island; it is also the largest and northernmost of Japan's 47 prefectural-level subdivisions. The Tsugaru Strait separates Hokkaido from Honshu, although the two islands are connected by the underwater railway Seikan Tunnel...
, 140000 oilbbl/d - Chiba Refinery, IchiharaIchihara, Chibais a city located in Chiba Prefecture, Japan. As of August 2010, the city has an estimated population of 279,080, with a population density of 758 persons per km². The total area of Ichihara was 368.20 km²...
, ChibaChiba Prefectureis a prefecture of Japan located in the Kantō region and the Greater Tokyo Area. Its capital is Chiba City.- History :Chiba Prefecture was established on June 15, 1873 with the merger of Kisarazu Prefecture and Inba Prefecture...
, 209000 oilbbl/d - Aichi Refinery, AichiAichi Prefectureis a prefecture of Japan located in the Chūbu region. The region of Aichi is also known as the Tōkai region. The capital is Nagoya. It is the focus of the Chūkyō Metropolitan Area.- History :...
, 160000 oilbbl/d - Tokuyama Refinery, Tokuyama, 120000 oilbbl/d
The Hyogo and Okinawa refineries were closed in 2003 after an agreement that Nippon Oil
Nippon Oil
The , or NOC or Shin-Nisseki is a Japanese petroleum company. Its businesses include the exploration, importation, and refining of crude oil; the manufacture and sale of petroleum products, including fuels and lubricants; and other energy-related activities.Its products are sold under the brand...
would supply Idemitsu Kosan with 40000 oilbbl/d of petroleum products.
In total there are 30 operating refineries in Japan with total capacity of 4.83 Moilbbl/d, giving Idemitsu Kosan a 13% share of the refining capacity. The company claims between 14% and 34% market share for different products.
Idemitsu Kosan is planning to build the Nghi Son Refinery
Nghi Son Refinery
Nghi Son Refinery is the second planned oil refinery in Vietnam. It would be located about south of Hanoi in Tinh Gia District of Thanh Hoa Province. Site-clearing for the project broke ground in 2008. Construction is expected to begin in 2011, and refinery operations are targeted for 2014....
in Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
in a joint venture with Kuwait Petroleum International, Vietnamese state owned PetroVietnam
Petrovietnam
PetroVietnam is the trading name of Vietnam Oil and Gas Group . PetroVietnam has developed rapidly since it was established in 1977, and its activities, through its various companies and wholly owned subsidiaries, now cover all the operations from oil and gas exploration and production to...
and Mitsui Chemicals
Mitsui Chemicals
is a Japanese Chemicals company listed on the Nikkei. It is a part of the Mitsui conglomerate. The company has a turnover of around 15 billion USD and has business interests in Japan, Europe, China, Southeast Asia and the USA. It employs approximately 13,000 people worldwide. The company mainly...
. With construction planned to start in 2010, it would be ready in 2013 and become the second in Vietnam after the Dung Quat Refinery
Dung Quat Refinery
Dung Quat refinery is an oil refinery in Quang Ngai Province, Vietnam. It is the first oil refinery in Vietnam.-History:The refinery project started already in 1980s. The refinery was planned to be construct near the port of Vung Tau, just away from the offshore oil fields. In 1988, the clearance...
. Idemitsu Kosan owns a 35.1% stake in the $6 billion, 200000 oilbbl/d refinery. Idemitsu has also opened an office in Hanoi
Hanoi
Hanoi , is the capital of Vietnam and the country's second largest city. Its population in 2009 was estimated at 2.6 million for urban districts, 6.5 million for the metropolitan jurisdiction. From 1010 until 1802, it was the most important political centre of Vietnam...
and is considering using the refinery as a base for expanding into Vietnam and surrounding countries.
Petroleum
Filling station
A filling station, also known as a fueling station, garage, gasbar , gas station , petrol bunk , petrol pump , petrol garage, petrol kiosk , petrol station "'servo"' in Australia or service station, is a facility which sells fuel and lubricants...
s, many under the Apollo brand.
Petrochemical products
Idemitsu Petrochemical runs two petrochemical plants in Chiba and Tokuyama. It produces a variety of basic chemicals supplied to chemical industries, in Japan and abroad. In Europe it markets through Idemitsu Chemicals Europe PLC.. Basic chemicals produced includes olefins such as ethyleneEthylene
Ethylene is a gaseous organic compound with the formula . It is the simplest alkene . Because it contains a carbon-carbon double bond, ethylene is classified as an unsaturated hydrocarbon. Ethylene is widely used in industry and is also a plant hormone...
and propylene
Propylene
Propene, also known as propylene or methylethylene, is an unsaturated organic compound having the chemical formula C3H6. It has one double bond, and is the second simplest member of the alkene class of hydrocarbons, and it is also second in natural abundance.-Properties:At room temperature and...
, and aromatics like benzene
Benzene
Benzene is an organic chemical compound. It is composed of 6 carbon atoms in a ring, with 1 hydrogen atom attached to each carbon atom, with the molecular formula C6H6....
, para-xylene and styrene monomer. It is also a supplier of plastics for uses such as CD pressing and circuit boards. The two naphtha
Naphtha
Naphtha normally refers to a number of different flammable liquid mixtures of hydrocarbons, i.e., a component of natural gas condensate or a distillation product from petroleum, coal tar or peat boiling in a certain range and containing certain hydrocarbons. It is a broad term covering among the...
crackers
Cracking (chemistry)
In petroleum geology and chemistry, cracking is the process whereby complex organic molecules such as kerogens or heavy hydrocarbons are broken down into simpler molecules such as light hydrocarbons, by the breaking of carbon-carbon bonds in the precursors. The rate of cracking and the end products...
can produce up to 997,000 tonnes of ethylene per year.
Lubricant
Lubricant
A lubricant is a substance introduced to reduce friction between moving surfaces. It may also have the function of transporting foreign particles and of distributing heat...
s, Idemitsu's first product is a major area. It also produces fluorescent materials for OLED displays. A joint venture with German company BASF
BASF
BASF SE is the largest chemical company in the world and is headquartered in Germany. BASF originally stood for Badische Anilin- und Soda-Fabrik . Today, the four letters are a registered trademark and the company is listed on the Frankfurt Stock Exchange, London Stock Exchange, and Zurich Stock...
, BASF Idemitsu Co. Ltd., produces 1,4-Butanediol
1,4-Butanediol
1,4-Butanediol is the organic compound with the formula HOCH2CH2CH2CH2OH. This colorless viscous liquid is derived from butane by placement of alcohol groups at each end of the chain. It is one of four stable isomers of butanediol.-Synthesis:...
for the Japanese market at Idemitsu's Chiba plant. Idemitsu also produces some medical drugs.
Other energy sources
- The company owns four coal mines in Australia producing 10 million tons per year.
- It participates in a uranium mine development in Cigar Lake MineCigar Lake MineThe Cigar Lake Mine is the largest undeveloped high grade uranium deposit in the world, located in the uranium rich Athabasca Basin of northern Saskatchewan, Canada....
in Canada. - Idemitsu is working on geothermal powerGeothermal powerGeothermal energy is thermal energy generated and stored in the Earth. Thermal energy is the energy that determines the temperature of matter. Earth's geothermal energy originates from the original formation of the planet and from radioactive decay of minerals...
in Ōita PrefectureOita Prefectureis a prefecture of Japan on Kyūshū Island. The prefectural capital is the city of Ōita.- History :Around the 6th century Kyushu consisted of four regions: Tsukushi-no-kuni 筑紫国, Hi-no-kuni 肥国, and Toyo no kuni...
, Japan. The plant will use a binary power generation system that produces electricity from both the steam with a regular turbine and from hot water by vaporizing pentanePentanePentane is an organic compound with the formula C5H12 — that is, an alkane with five carbon atoms. The term may refer to any of three structural isomers, or to a mixture of them: in the IUPAC nomenclature, however, pentane means exclusively the n-pentane isomer; the other two being called...
which then drives a turbine. - Together with Mitsubishi CorporationMitsubishi Corporationis Japan's largest trading company , a member of the Mitsubishi keiretsu. Mitsubishi Corporation employs over 50,000 people and has seven business segments including finance, banking, energy, machinery, chemicals, food and more....
, Idemitsu plans to mass produce biofuelBiofuelBiofuel is a type of fuel whose energy is derived from biological carbon fixation. Biofuels include fuels derived from biomass conversion, as well as solid biomass, liquid fuels and various biogases...
from non food crops, using a method developed by HondaHondais a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...
and the Research Institute of Innovative Technology for the Earth for converting rice straw and weeds to ethanol fuelEthanol fuelEthanol fuel is ethanol , the same type of alcohol found in alcoholic beverages. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline. World ethanol production for transport fuel tripled between 2000 and 2007 from 17 billion to more than 52 billion litres...
. The factory will likely be placed in North America, China or Southeast Asia, where the raw materials are available for a low price.
Advertisement and sponsorship
- Idemitsu Museum of ArtsIdemitsu Museum of Artsis an art museum located in the . The museum was founded in 1966 and is administered as an incorporated foundation of . In 2000, , a branch of the museum, opened in , in . The museum maintains a permanent collection consisting primarily of Japanese painting and East Asian ceramics, and also holds...
, two art museums, in Tokyo and MojiMoji-ku, Kitakyushuis a ward of Kitakyūshū, Fukuoka Prefecture, Japan. It is the former city of Moji which was one of five cities merged to create Kitakyūshū in 1963. It faces the city of Shimonoseki across the Kanmon Straits between Honshū and Kyūshū....
, where Idemitsu & Co. was started., a motorcycle trial - Ultra IdemitsujinUltra Idemitsujinis CM characters of Idemitsu Kosan by Tsuburaya Productions.Their stuffed-suits are only heads and gloves, and they wear jersey, the white robe, and the suit, respectively....
, UltramanUltramanis Japanese television series that first aired in 1966. Ultraman, the first and best-known of the "Ultra-Crusaders," made his debut in the tokusatsu SF/kaiju/superhero TV series, , a follow-up to the television series Ultra Q...
characters used in TV commercials.