Japanese petroleum supplier Idemitsu Kosan is set to buy out its affiliate Seibu Oil by October and close its only refinery as early as fiscal 2023, the Nikkei newspaper reported on Tuesday.
Idemitsu will increase its current 38% stake in Seibu Oil to make it a wholly owned unit, the report said. Japan’s UBE Corporation 4208.T and Chugoku Electric Power also have stakes in the oil company.
Idemitsu is considering using the refinery in Yamaguchi as a hub for alternate sources of energy such as hydrogen or ammonia, according to Nikkei. An official announcement will be made later on Tuesday, it added.
“We haven’t announced anything yet so there is nothing to say at this point,” said a spokesperson for Idemitsu Kosan, adding that a news conference will be held at 1500 JST on Tuesday.
Reuters