Sept 09 - Crude Oil Refining Reduction for 3Q (October-December) of 2009

Source Company Web Site
Company Idemitsu 
Tags Upstream Activities
Date September 28, 2009

Idemitsu Kosan Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President: Kazuhisa Nakano) announces that it has decided that total crude oil refining of the four refineries scheduled for the 3Q of 2009 will be 7.0 million KL, 95% against the same period of the previous year.

The volume of crude oil refining above is a 0.4 million KL reduction from a year earlier.

Trends in domestic demand for fuel oils continue to be sluggish mainly for diesel oil, despite the temporarily increased demand due to a reaction to the decreased demand amid soaring oil prices in the last year and lowered expressway tolls in this year. On the other hand, adjustment of domestic inventories of finished products has made progress assisted by reduced operations at refineries and increased exports, and the inventory of diesel oil has been reduced by about 10% against the average volume in the same period of the past three years.

To respond to flagging domestic demand, the Company will continue to cutback its production. As a significant production cutback was implemented (refining at the level of 85% of the year before last) in the same quarter of the previous year, the refining scheduled for the 3Q of 2009 above is 80% against the same period of the year before last.

In addition, if fuel oil demand increases due to trends of temperature in the 3Q, the Company will adjust its utilization to ensure the stable supply of fuel oils

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