Cosmo Oil is one of Japan’s largest oil refining and marketing companies. IPIC holds a 20.8% stake in the company, which operates four refineries in Japan and markets its products domestically through a network of 3,500 petrol stations, as well as overseas. It also produces and sells petrochemicals products, and engages in crude oil exploration and production operations primarily in the UAE and Qatar.
The company is a fully integrated operator in the upstream, midstream and downstream sectors. Its petrochemical business produces mixed xylene, which is used in polyester fibres and polyethylene terephthalate (PET) bottles and is enjoying increasingly high demand in Asia and especially in China.
Cosmo Oil manufactures oil products in three oil refineries at Chiba, Yokkaichi and Sakai. A new heavy oil cracking unit at the Sakai refinery is expected to provide cost reductions in the refining process by using heavy crude oil.
The company is currently opening up new markets for its oil products in North America and Oceania, with a particular focus on refined kerosene, jet fuel, and light oil products that can meet the strictest environmental standards.
To reinforce a stable supply of petroleum, the Cosmo Oil Group has forged strong, long-term relationships of trust and cooperation with the oil-producing nations of the Middle East. The UAE and Japan enjoy strong commercial ties, with Japan being the largest importer of oil from the UAE and the UAE being one of the largest exporters of crude oil to Japan. IPIC made its investment with a view to strengthening these ties, while providing a platform for future growth through partnerships with Cosmo Oil in the Asia Pacific region and underpinning Cosmo Oil’s existing concessions for oil exploration and production in the UAE. The investment was also driven in part by the potential benefits of synergies between Cosmo Oil and other companies within the IPIC group.