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Press Release

Restructuring of Refinery Supply

March 20, 2018
Cosmo Oil Co., Ltd.

Cosmo Oil Co., Ltd. (President: Hisashi Kobayashi) announce that the company submitted the change of its plan to the Ministry of Economy, Trade and Industry (hereafter, METI), on complying with "the first and second announcement of the Sophisticated Methods of Energy Supply Structures" (hereafter, post Kodoka-ho), which has been accepted by METI as below.

Corresponding to the first announcement:Disposal of #5 Crude Distillation Unit(CDU) at Yokkaichi Refinery
Corresponding to the second announcement:Reduction of Crude Distillation Unit (CDU) capacity

1. Background

Our original plan was to comply with the first announcement by disposing the #1 CDU at Chiba Refinery after integration of Cosmo Oil Chiba refinery and JXTG energy (President: Tsutomu Sugimori) Chiba refinery via pipelines (completed on February 2018).
But due to environmental changes, it was decided to continue the operation of Cosmo Oil's #1 CDU. We will continue to maximize the synergies through the operation of Keiyo Seisei JV G.K.(President: Kentaro Take)but without the full integration of the refineries.

2. Implementation date

March 31, 2018

3. Capacity

As of March 30,2018 After implementation
(As of March 31,2018)
Chiba Refinery #1 CDU 75,000 75,000
#2 CDU 102,000 102,000
Total 177,000 177,000
Yokkaichi Refinery #5 CDU Stop (mothball) Dispose
#6 CDU 86,000 86,000
Total 86,000 86,000
Sakai Refinery CDU 100,000 100,000
Total 363,000 363,000
*Including the supply of the petroleum product/semi product (37,000 bbls/day equivalent) from Showa Shell Sekiyu with the business alliance.
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