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Press Release

Refining Optimization

March 28, 2017
Cosmo Oil Co., Ltd.

Cosmo Oil Co., Ltd. (President and Representative Director: Hisashi Kobayashi) hereby announces to change the nameplate CDU capacity at both Chiba and Yokkaichi Refinery.

This announcement is to comply with "the second phase of the Sophisticated Methods of Energy Supply Structures" (hereinafter "post-Kodoka-ho") which have been publicly announced on July 31, 2014 and requires increase of heavy oil upgrading unit capacity or reduction of CDU capacity. Considering optimization of the domestic petroleum products supply-demand balance, the company made a decision to change the CDU capacity at both refineries. This plan has already been submitted to and accepted by the Ministry of Economy, Trade and Industry.

The suspension of No.5 CDU at Yokkaichi Refinery is based on the "Business Alliance Agreement for increasing the competitiveness in Yokkaichi Area with Showa Shell Sekiyu K.K." (hereinafter "Business Alliance"), which starts from the end of March, 2017.

1. Crude Distillation Capacity


Refinery CDU Capacity
Chiba No.1 110,000 75,000 -35,000
No.2 130,000 102,000 -28,000
Total 240,000 177,000 -63,000
Yokkaichi No.5 0 0 0
No.6 85,000 86,000 1,000
Total 85,000 86,000 1,000
Sakai   100,000 100,000 0
Total - 425,000 363,000 -62,000

*On top of the above, we receive the supply of the petroleum product/semi product (37,000 barrels/day equivalent) from Showa Shell Sekiyu K.K. with "Business Alliance".

(1 barrel≒159 liters)

2. Effective Date

March 31, 2017 Friday

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