HOME > Business Divisions / Energy & Mineral Resources Division > Major Business Activities
Oil and Gas Upstream Concessions
Production platform at the MC-486 block in the U.S. Gulf of Mexico
Sojitz continues to pursue investments in oil and gas upstream concessions utilizing full advantage of its unique know-how and worldwide networks. In addition to the existing assets in the U.K. North Sea, the U.S. Gulf of Mexico, Qatar, Gabon, and Egypt, Sojitz acquired gas upstream assets in the U.K. North Sea and the Gulf of Mexico last year, and plans to start oil production in Brazil in 2009. Sojitz will continue to mitigate risk by acquiring assets with consideration for the need to maintain a regionally balanced portfolio, while striving to obtain the interests to meet the goal of 40,000 barrels of crude oil equivalent per day targeted in the medium-term management plan.
Petroleum Trading Business
Tokyo Yuso Co., Ltd.'s high-performance Kawasaki Terminal
Sojitz is involved in the development of mid- and downstream petroleum businesses. While Sojitz handles the trading and sale of crude oil and petroleum products in Japan and internationally, Group subsidiaries are responsible for the management of gasoline stations, the sale of coke and carbon products, and a petroleum and chemical tank facility business, among other operations. These examples are just some of the ways that business development founded on the Group's collective strengths is a major advantage for Sojitz. Plans are also under way for the Company to establish a presence in bioenergy, gas trading, and other new sectors.
Nuclear Fuel
MOX fuel pressurized water reactor (PWR) fabricated by Areva of France
Sojitz acts as the distributing agent in Japan for France's Areva NC, the world's top integrated nuclear fuel cycle company. The division provides a full range of products and services to Japanese power utilities from front-end (uranium concentrates; conversion, enrichment and fuel fabrication services) through back-end (reprocessed uranium recycling, MOX fuel fabrication and its associated services). We also supply support for the overseas reprocessing of spent nuclear fuel from these same utilities. Moreover, through affiliate companies, we sell a wide variety of other equipment, fuels and materials pertaining to nuclear power generation. Looking ahead, we will leverage Sojitz' solid position in this industry to expand business further as a partner to the Areva Group.
Coal Business
Open-pit mining at the Minerva Coal Mine in Australia
Sojitz coal operations are comprised of a distribution business involving the sale of steaming and coking coals, and an investment business for securing coal resources overseas, from which we work to draw synergies. In coal sales, we are striving on the one hand to expand existing sales volume and identify new sources primarily for coal from Russia, for which we enjoy the top share of imports to Japan, and from Indonesia. At the same time, we are also focusing on sales to China and other countries. Where investments are concerned, we bought additional interests in the Minerva Coal Mine in Australia last year. We will also expand investments in other coal projects in Australia, as well as in Indonesia and Russia, to accumulate a greater volume of coal from such interests.
Ferroalloy & Iron Ore Business
Endako Molybdenum Mine in Canada
In this business, Sojitz handles the so-called rare metals, especially molybdenum, vanadium, manganese, chrome, nickel, niobium, silicon, and other ferroalloys used in steel production. Of these, molybdenum and vanadium in particular require investment in overseas mining projects to secure stable supplies while retaining high profitability. In iron ore, we rank second among Japanese trading companies in imports. Going forward, we plan to extend sales of iron ore and related investments to China and other countries as we seek to broaden our business scope.
Non-ferrous Business
Worsley Alumina Refinery in Australia
Sojitz has a distribution business involved in the sale of aluminum such as billet and alloys produced by Aluminium Bahrain B.S.C. (ALBA) in Bahrain, as well as copper, zinc, tin and other metals. On top of the distribution business, we invested in alumina production projects in Worsley, Australia jointly with BHP Billiton, one of the world's largest resource firms. In cooperation with prominent partners in Japan and overseas, we plan to expand the distribution business especially in Southeast Asia in the coming years. At the same time, we will examine the feasibility of taking part in development projects related to copper, zinc and other metals.
New Energy Business
A memorandum of understanding relating to brown coal utilization was concluded with Indonesia's state electricity corporation
The Energy & Mineral Resources Business Development Office, established under the direct control of this division last year, is devising initiatives for new energy-related businesses. At present, the office is working to formalize projects along three main lines: clean coal technologies (including the development of technologies for utilizing brown coal in Indonesia), biofuels, and emissions credits/CDM businesses. We have also set up a New Energy Technology Model Fund for eco-friendly energy choices, coupled with investment in new technologies and business models with the potential to play a central role in the next generation.
LNG - LNG Japan Corporation
Shipments at the LNG terminal in Bontang, Indonesia
LNG Japan Corporation is Sojitz Group's LNG-related operating company, 50% owned by Sojitz and 50% by Sumitomo Corporation. Leveraging a wealth of experience and expertise derived from around 40 years in the LNG business centering on Indonesian projects, the company is striving to expand its business area and create a new value chain in the LNG business all over the world. Current projects include the Ras Laffan LNG project in Qatar, where production is proceeding smoothly, and the Tangguh LNG project in Indonesia, where production is set to commence at the end of 2008. At present, LNG Japan is involved in discussions aimed at securing participation in an upcoming project in Nigeria and conducting long-term LNG trading for the project.
Steel Business at Metal One Corporation
Line pipe integration terminal in Western Australia
Metal One Corporation, a joint venture 40% owned by Sojitz and 60% owned by Mitsubishi Corporation, is Japan's largest trading company in steel products. Since its establishment in 2003, the company has consistently performed well, reflecting distinctive growth strategies, synergies from business collaborations with its parent companies, and a favorable business climate. Going forward, the company will take steps to maintain and expand the dominant strength it enjoys in Japan, while continuing to build global value chains by further enhancing energy industry-related and overseas transactions.
