With its presence in more than 70 countries, JX Group manages some of the largest oil and gas operations across the world, including exploration, import and refining of crude oil, manufacture and distribution of petroleum products, including fuels and lubricants and other energy-related activities.
“We are expanding to the Middle East and Africa regions. It is in line with the group’s strategy to spread out in promising international markets,” Michio Ikeda, Senior Vice-President of JX Nippon Oil & Energy Corporation, told Arab News on the sidelines of their new corporate office opening in Dubai.
Ikeda said Nippon was affected by the Great East Japan Earthquake on March 11, 2011, during which two of its refineries — Sendai and Kashima — suffered severe damages.
“It is almost a year after disaster struck our facilities but we have managed to bounce back by restarting our operations in June 2011 and we look forward to 100 percent operating capability by the end of this month,” he said.
The group reported a consolidated sales income of $120 billion in 2010. In Japan alone, NOE operates a huge network of around 12,000 service stations operating under the brand “ENEOS” and leads the Japanese market for petroleum products sales with a 37 percent market share.
“The Middle East market has been growing for the last 10 years in terms of GDP and oil. In addition, this region is one of the fastest growing economies in the world,” Michio Ikeda added.
Outlining the expansion strategy, Ikeda said: “Our performance in high-growth international markets is imperative, considering that the world’s demand for energy is increasing exponentially, especially in Asia, and that international competition for acquiring rights for development of oil and gas resources is becoming increasingly intense.”
“One of our major missions is to supply oil lubricants to Japanese auto manufacturers in different continents. Currently, we have 16 over-seas markets and a number of employees, including 500 Japanese, work there,” he said.
Speaking to Arab News, Tomohiko Kagawa, the managing director of the newly opened Middle East and Africa office, said: “Initially the UAE office, which is located in Jabel Ali Free Zone, will be overseeing the group’s lubricants business in the Middle East, Africa, Pakistan and several countries in the CIS Region.”
Kagawa added: “We have great interest on Saudi market and we are planning several programs to introduce our high quality lubricants in the Kingdom.”
When asked how his product is going to compete with local giants in the Middle East, Kagawa said his company’s lubricant is better than the products that are available in the market — in terms of saving energy, durability and performance.
“Our engine oils provide high fuel economy, increased emission system durability, enhanced piston cleanliness and reduced engine sludge” he said.
“In the future, we will step into industrial and marine lubricants, our company has more than 3000 products,” Kagawa added.
