en.Wedoany.com Reported - Shigeru Yamada, CEO of Japan's Cosmo Holdings (parent company of Shigeru Corporation), stated that despite the ongoing war in Iran, the company will continue to focus on crude oil procurement and upstream investments in the Middle East, citing the cost competitiveness of Middle Eastern crude and the suitability of its products for the company's refineries.
Similar to other major Japanese refiners, Japan's third-largest oil refiner sourced approximately 95% of its crude oil from the Middle East before the war broke out on February 28. This heavy dependence makes the company vulnerable to supply disruptions and has prompted it to seek alternative sources.
"From a security perspective, we recognize that 95% dependence is a problem," Yamada said at a press conference. However, he emphasized that the focus should be on reducing overall reliance on Middle Eastern crude rather than abandoning the Middle Eastern market itself. Yamada stated that Cosmo will step up efforts to diversify supply sources in emergencies and consider measures to enable refineries to process a wider range of crude grades.
Cosmo's newly announced long-term plan, extending through 2035, aims to increase oil production in Abu Dhabi, boosting crude output from the current 43,000 barrels per day to 51,000 barrels by 2028 by maximizing production from existing fields, including the Hail field, and developing new projects. The company will also consider expanding natural gas development and strengthening its partnership with the United Arab Emirates.
Cosmo plans to invest 300 billion yen each in upstream and oil businesses, and 200 billion yen in the power supply chain over the next decade. The company targets a recurring profit of 250 billion yen for the fiscal year ending March 2036, up from 165.7 billion yen in the fiscal year ending March 2026. In pursuing growth, the company aims to diversify from the oil business into materials, involving products used in semiconductors, electronic components, and other areas where demand is expected to grow due to artificial intelligence and digitalization. The company also plans to develop lithium ore resources needed for lithium batteries. Additionally, Cosmo is considering liquefied natural gas as a fuel for power generation. (1 U.S. dollar = 160.8800 yen)
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