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Sumitomo to Jointly Manage Oil Refiner Nansei Sekiyu K.K. with Petrobras
:: 12 November, 2007
Major Japanese trading company Sumitomo Corp. said it has agreed with Brazil's Petrobras to jointly manage Nansei Sekiyu K.K., an oil refiner based in Okinawa Prefecture.
Sumitomo and the Brazilian state-run oil company will use Nansei Sekiyu K.K. as a base for shipments of petroleum products such as jet fuel and diesel fuel to China and Southeast Asian nations.
Nansei Sekiyu is currently owned 87.5 pct by TonenGeneral Sekiyu K.K. in terms of voting rights and 12.5 pct by Sumitomo. Petrobras has agreed to acquire all of TonenGeneral's stake, while Sumitomo will retain its stake.
Sumitomo and Petrobras will also consider using Nansei Sekiyu as a foothold for businesses related to new energy sources such as bio-ethanol.
Nansei Sekiyu, which has a daily oil refining capacity of 100,000 barrels, plans to upgrade its facility to enable processing of heavy oil produced in Brazil.
About Sumitomo Corporation
Sumitomo Corporation is a highly built worldwide trading company (Sogo shosha), and is a diversified corporation based in Tokyo, Japan. It is a member company of the Sumitomo Group.
Sumitomo was founded in Kyoto in the 1600s by bookseller and chemist Masatomo Sumitomo. Its main industry through most of the Edo era was copper mining, a business started by Sumitomo's brother-in-law Riemon Soga. The company was incorporated in 1919.
In 1996, the company disclosed a loss of 2.6 billion dollars, blaming unauthorized trades by its chief copper trader, Yasuo Hamanaka, over a period of more than ten years.
Today, the company, Sumitomo Corporation, is one of the top three Sogo shosha companies in the world.
About Petrobras
Petrobras, short for Petróleo Brasileiro S.A., is a semi-public Brazilian oil company headquartered in Rio de Janeiro. The company was founded in 1953 mainly due to the efforts of the Brazilian President Getúlio Vargas. While the company ceased to be Brazil's oil monopoly in 1997, it remains a significant oil producer, with output of more than 2 million barrels of oil equivalent per day, as well as a major distributor of oil products. The company also owns oil refineries and oil tankers. Petrobras is renowned for its leadership in development of advanced technology from deepwater and ultra-deep water oil production. 55.7% of Petrobras' Common shares (with vote right) is owned by the Brazilian government, however privately held portions are traded on Bovespa, where it is part of the Ibovespa index.
Release link: http://www.sumitomocorp.co.jp/english/company_e/
