JCCP NEWS
Newsletter of Japan Cooperation Center, Petroleum

TopicsNo. 101
August 2008

JCCP Welcomesa New Executive Director

In this issue:
TopicsJCCP Welcomes a New Executive
Director

1

Signing Ceremonyin Saudi Arabia

2

Signing Ceremony in UAE

4Participation in “The 6th ME
Petrotech” in Bahrain

6

Establishment of New JPI Award

8

Mr. Mikio Kojima has retired from the position of Executive
Director of JCCP as of June 30, 2008, and has been appointed
Executive Advisor, effective July 1. The position of Executive Director
has been filled by Mr. Masataka Sase, on July 1.
The next issue of JCCP NEWS will feature messages by Messrs.
Kojima and Sase.
We ask for your continued support and cooperation in JCCP.

HS-FCC Process in Saudi Aramco
Journal of Technology
10
Personnel Exchange Programs
Petroleum Marketing Course(TR-2-08)

11

Participant’s Voice

14

JCCP Regular Courses CompletedApril – June 2008
16
Reference
Overview of JCCP Country-Specific
Action Plan
17
“The 26th JCCP International
Symposium” Speech Summaries
and Closing Address
21• Keynote Speech
by Mr. Akira Idemitsu
21• Guest Speech
by Mr. Waleed H. Albedaiwi
23• Summary and Closing Address
by Mr. Mikio Kojima
26

Mr. Mikio Kojima
Executive Advisor

Mr. Masataka Sase
Executive Director

Announcement
Personnel Changes

28

JCCP NEWS No. 101 August 2008

• Topics •1

Topics

Signing Ceremony
for the Joint Project on FCC Catalyst Development
and Evaluation Technologies in Saudi Arabia
On April 27, 2008, JCCP and King Fahd
University of Petroleum and Minerals (KFUPM)
held an MOA signing ceremony for the “TechnicalCooperation Project on FCC Catalyst Development
and Evaluation Technologies in Saudi Arabia,” which
the two organizations will be jointly implementing.
The ceremony was held at KFUPM in the presenceof Mr. Hiroshi Oka, Japanese Minister to Saudi
Arabia, followed by a press conference and otherrelated events. Other attendees included Mr.
Takahiko Yamaji, President of Nippon Oil ResearchInstitute Co., Ltd., who attended on behalf of the twocompanies that will be responsible for implementing
the project (Nippon Oil Research Institute Co., Ltd.
and Nippon Oil Corporation), as well as a numberof members from Saudi Arabian Oil Company(Saudi Aramco). Amid this gathering, Dr. Sahel N.
Abdul-Jauwad, Vice Rector for Applied Research
at KFUPM, and Mr. Katsuo Yokoyama, Managing
Director of JCCP, mutually signed the agreement.
News of the signing ceremony was broadcast on
Saudi national TV, followed by a press conference.
Dr. Abdul-Jauwad expressed his joy in being able
to sign the project agreement. He stated that thegoals of the project are to strengthen the relationshipof joint research with Japan and develop research

capacities at KFUPM. He also emphasized his firm
belief that the project will bring beneficial results
to the oil refining industry in both countries. Mr.
Yokoyama expressed his confidence that the projectwill contribute to the oil industry in Saudi Arabia
and ultimately help KFUPM researchers develop
new, advanced catalysts on their own, toward
improving productivity in their refineries. Statingthat building a strong relationship of trust between
the two countries based on the project is JCCP’s
ultimate goal, he affirmed JCCP’s commitment toachieve that goal.
The new project is based on the results of theTechnical Cooperation Project on the Effective
Utilization of Light Oil Distillates in Saudi Arabia,
which was also jointly implemented by JCCP andKFUPM, from April 2006 to March 2007, as part of
JCCP’s project-finding (PF) activities. It is estimatedthat FCC catalysts could be used ten times more by
installing new FCC units and expanding existing
units in Saudi Arabian refineries, as planned. The
new project therefore aims to transfer to KFUPM
evaluation technologies that Saudi Arabian refineries
would need in the future to select an optimum FCC
catalyst. It also aims to take this objective further,to help Saudi Arabia build the necessary capacities

Courtesy call on H.E. Dr. Khaled S. Al-Sultan,
Rector of KFUPM (left)
Mr. Oka (right), Mr. Yamaji, President of Nippon Oil
Research Institute Co., Ltd. (second from right)

Exchange of the contract
Dr. Sahel N. Abdul-Jauwad (right),
Mr. K. Yokoyama (left)

2• Topics •JCCP NEWS No. 101 August 2008

for independently developing new catalysts suitable
to the country’s FCC units in the future.
The project is scheduled to be implemented
over a period of three years, from April 1, 2008 to
March 31, 2011, with the participation of Nippon
Oil Research Institute Co., Ltd. and Nippon Oil
Corporation, and is to be implemented in thefollowing four stages.
(1) Introduction of facilities
An advanced cracking evaluation unit (ACEunit) will be installed at KFUPM, and operational
training provided to KFUPM researchers, toupgrade research activities related to the evaluationof FCC catalysts.
(2) Technical transfer
Technologies for producing FCC catalysts andfor conducting tests using the ACE unit will betransferred to KFUPM.
(3) Evaluation of FCC catalysts
Further technologies will be transferred to
KFUPM, to allow KFUPM researchers to actually
use the technologies transferred to them in stages(1) and (2), and to evaluate catalysts that are planned
to be used.

strong interest in the advancements being made withregard to the high-severity fluid catalytic cracking(HS-FCC) technology, which has been jointly
developed by KFUPM, Saudi Aramco, Nippon
Oil Corporation, and JCCP. He took note of thedevelopment of the semi-commercial HS-FCC unit
in Japan, and inquired about the future registrationof patents for that technology.
Mr. Yokoyama expressed his strong hopes thatthe project will further deepen the relationship oftrust that KFUPM and JCCP have cultivated throughthe implementation of numerous projects, to date.
News of the signing ceremony was covered by
local newspaper Al-Watan (April 28, 2008 edition)and on its English website.
JCCP hopes that the successful completionof the project will further strengthen friendly
ties between Saudi Arabia and Japan, and thatthe transfer of evaluation technologies for FCC
catalyst development will contribute to upgrading
oil refining technologies in Saudi Arabia.
<Keikoh Sasaki, Technical Cooperation Dept.>(4) Development of FCC catalyst
Efforts will be made to foster the ability in
KFUPM researchers to research and develop
advanced FCC catalysts suitable to FCC units in
Saudi Arabia.
The project is expected to improve the processing
technologies of FCC units in Saudi Arabia, and to
ultimately play an important role in the global oil
refining sector.
Prior to the signing ceremony, the Japaneseparties to the project paid a call on H.E. Dr. Khaled
S. Al-Sultan, Rector of KFUPM. His Excellency
acknowledged the significant relationship that
JCCP and KFUPM have cultivated through theyears, and expressed his strong expectations thatthe new project will further strengthen and develop
the cooperative relationship. He showed especially

Articles of the signing ceremony featured in
the local newspaper and its English website.

JCCP NEWS No. 101 August 2008

• Topics •3

Topics

Signing Ceremony
for the Joint Project on Removal of Acid Gases fromNatural Gas Using Membrane Contactors (Phase II)
On May 19, 2008, United
Arab Emirate University (UAE
University) and JCCP held aceremony for the signing of a
Memorandum of Agreement(MOA) on a joint technicalcooperation project slated for
implementation in FY2008.
Joint technical cooperation
projects are the mainstay of JCCP
technical cooperation activities.
UAE University and JCCP began
implementing these projects in
Members of the Japanese delegation and UAE University,
FY2001, with the participation
with H.E. Dr. Maitha Salem Al-Shamsi, Minister of State (center)of the UAE oil industry (AbuDhabi Oil Refining Company(TAKREER)) and the UAE gas industry (Abu Dhabi refining company affiliated with ADNOC, and JCCP
Gas Liquefaction Co. Ltd. (ADGAS)). They aim have jointly implemented projects for wastewater
to strengthen friendly relations between UAE and and acid gas treatment within the UAE oil industry,
Japan, by transferring Japan’s technologies and from FY2005 to FY2007, in the effort to enhance
expertise in global warming and environmental technologies for mitigating environmental burden
pollution countermeasures to UAE University and in the Ruwais Refinery of TAKREER.
Based on the results of those projects, UAE
UAE oil and gas industries.
The project for which the signing ceremony was University and JCCP decided to implement
held constitutes phase 2 of the project on acid gas phase 2 of the project in FY2008, to promote thetreatment, which was implemented from FY2005 to commercialization of the technology for the selective
FY2007. It will examine the feasibility of employing removal of acid gases from a hydrocarbon gas
membrane contactors in the selective removal of stream. Following the preparation of a new MOA,
acid gases (e.g. CO2 or H2S) from hydrocarbon the two organizations held the signing ceremony at
gas at the laboratory level, applying the Das Island UAE University on May 19, and officially kicked
LNG plant as a model. The ultimate goal of the off the FY2008 project.
Prior to the signing ceremony, Mr. Katsuo
project is to reduce energy consumption by using
the membrane separation technology to remove acid Yokoyama, Managing Director of JCCP, andgases, in place of the conventional method that uses other members of the Japanese delegation paid acourtesy call on Mr. Kazuo Sunaga, Minister at
an amine solution.
In UAE, Abu Dhabi National Oil Company the Embassy of Japan in UAE, to report on the(ADNOC) is strongly promoting a Health, Safety successful completion of the signing ceremony, andand Environment (HSE) Management Program in to introduce and ask for his cooperation with JCCP
the oil sector. Under this scheme, TAKREER, an oil activities in UAE.
4• Topics •JCCP NEWS No. 101 August 2008

The signing ceremony was held in an auditorium
on UAE University’s Al-Maqam campus, with theattendance of Dr. Abdulla Al-Khanbashi, Acting
Vice Chancellor and Provost, and other membersof the University on the UAE University side,and members of a Japanese delegation headedby Mr. Yokoyama. Amid a friendly atmosphere,
Dr. Al-Khanbashi and Mr. Yokoyama signed the
MOA with hopes for the project’s success, andexchanged commemorative gifts and words ofcongratulations.
Mr. Takahiko Yamaji, President of Nippon
Oil Research Institute Co. Ltd., also attended the
ceremony and articulated his firm commitment
to the project. Nippon Oil Research Instituteis a major participant in a number of JCCP
technical cooperation projects, and will be themain implementing company of the new project.
Mr. Matsushita, First Secretary at the Embassy ofJapan in UAE, attended the ceremony on behalfof Ambassador Takuma Hatano, and relayed theAmbassador’s hopes that the project will further
promote friendship between UAE and Japan.

Exchange of commemorative gifts
Dr. Abdulla Al-Khanbashi, Acting Vice Chancellor andProvost of UAE University (right), andMr. Katsuo Yokoyama, Managing Director of JCCP

On the UAE University side, the ceremony washonored by the attendance of H.E. Dr. Maitha Salem
Al-Shamsi, Minister of State. Before being
appointed to Minister of State in February 2008,
Dr. Al-Shamsi was Assistant Provost for Researchof UAE University, and a counterpart for JCCP
technical cooperation projects in UAE (she still holds
the position of Director of the center for externally
funded research activities (eFORS)). At the signingceremony, she conveyed words of appreciation for
JCCP technical cooperation projects.
A dozen or so newspaper journalists andphotographers witnessed the ceremony. Articles
introducing the event, accompanied by photos, werecarried in Khaleej Times, a major English-language
newspaper in UAE, and on Internet websites.
JCCP looks forward to the successful completionof the project and to the smooth transfer of Japan’s
technologies in environmental and environment
improvement measures, as significant steps indeepening friendly relations between UAE andJapan.
<by Nobuyuki Suyama, Technical Cooperation Dept.>

Article on the signing ceremony(Khaleej Times, May 27, 2008 edition)

JCCP NEWS No. 101 August 2008

• Topics •5

Topics

Participation in “The 6th Middle East
Refining and Petrochemicals Conference& Exhibition” in Bahrain
From May 26 to 28, 2008, “The 6th Middle
East Refining and Petrochemicals Conference &Exhibition” (ME Petrotech 2008) was held at the
Bahrain International Exhibition Centre, located in
Manama, Bahrain, under the auspices of nationaloil companies of GCC oil-producing countries,
including Saudi Arabian Oil Company (Saudi
Aramco), Kuwait National Petroleum Company(KNPC) and Bahrain Petroleum Company (BAPCO),
as well as western oil and petrochemical companies
such as UOP, Shell, and Dow Chemical.
Held once every two years, ME Petrotech
is the largest event in the Middle East, for oiland petrochemical business in the oil-producing
countries of the region. JCCP participated in the
exhibition part of the event for the third time,
following its previous participation in the 4th (2003)
and 5th (2006) exhibitions.
This year, JCCP was allotted a space at the end of
the central aisle of the exhibition floor to set up its
booth (18 m2: 3 m x 6 m). Owing to this favorable
location, the JCCP booth received more than 1,000
visitors, mainly from oil-related companies in GCC
oil-producing countries, throughout the duration of
the event, a number far exceeding JCCP’s original
expectation.

The booth introduced JCCP using 16 information
panels, an introductory DVD on JCCP activities,
publication materials including brochures, annual
training programs, and newsletters.
A number of the panels used in the previous
exhibition were revised this year. A new panel
was added to two existing panels that provided an
overview of JCCP activities, and the comprehensive
view of JCCP activities was designed so thattwo panels connect to form a single image,to facilitate understanding. Where two panels
previously introduced JCCP training courses andrecent achievements, two new panels were added
to show step-by-step how regular courses andtailor-made courses are implemented, in an easy
to understand design using photographs. In thearea of technical cooperation projects, a panel
provided an overview, another introduced the JointGCC-Japan Environment Symposium, and seven
panels featured representative technical cooperation
projects, including the joint international research
project with King Fahd University of Petroleum
and Minerals (KFUPM) and the joint project on
high-severity fluid catalytic cracking (HS-FCC)
technology (demonstration study) conducted with
Saudi Aramco.

The entrance to the ME Petrotech venue

At the JCCP booth6• Topics •JCCP NEWS No. 101 August 2008

Using information panels to explain
technical cooperation projects

JCCP graduates focusing their attention on
an introductory DVD on JCCP activities

In addition to key figures from major oilproducing countries and top executives of JCCP
counterparts such as Saudi Aramco, a large numberof people who have heard about JCCP training
courses and technical cooperation projects visitedthe JCCP booth. JCCP members received the strong
impression that JCCP activities are becoming
more widely recognized in the Middle East region.
Nevertheless, few people had a full understandingof both training courses and technical cooperation
projects, and many inquired as to why JCCP isproviding support to oil-producing countries.
Therefore, the exhibition provided the perfectopportunity for JCCP members to personallyexplain JCCP’s overall activities and its mission indetail to each visitor.
The JCCP booth also received visits by many
JCCP graduates from JCCP counterparts such as
Saudi Aramco, Abu Dhabi Oil Refining Company(Takreer), and BAPCO. Many of them planned torecommend that their colleagues and subordinates

attend a JCCP regular course, since they themselves
have greatly benefited from participating in JCCP
training courses. This indicated a strong need forhuman resource development in the Middle East. In
addition to JCCP graduates, many engineers cameto the JCCP booth, inquiring detailed informationon technical cooperation projects. Their detailed
questions were also indicative of the high level ofinterest in technical cooperation projects in oilproducing countries.
JCCP values the opinions and requests thatwere obtained through direct communications withvisitors to the JCCP booth, and will use the feedback
to further enhance activities in response to their
expectations. Events such as this ME Petrotech,which offer opportunities for JCCP to directlyinteract with parties in the oil industries in Middle
East oil-producing countries, are an ideal forum
for publicity activities. JCCP will continue to seize
such opportunities to introduce JCCP activities andpromote greater understanding of its mission.
<by Kaoruko Nakamura, Administration Dept.>

Responding to questions from visitors

JCCP graduates(Saudi Aramco engineers in front of the JCCP booth)

JCCP NEWS No. 101 August 2008

• Topics •7

Topics

Establishment of New JPI Award
for Technical Developments
in Oil-Producing Countries
Japan Petroleum Institute (JPI) establisheda new award for technical developments in oilproducing countries this year, in commemorationof the 50th anniversary of its founding. The award
is to be presented to individuals or organizations inboth oil-producing countries and Japan, who havetogether made a significant achievement in the
research and development or improvement of oilrelated technologies in oil-producing countries, or
have contributed to promoting technical exchanges.
The commendation is expected to deepen mutual
understanding between oil-producing countries
and Japan, increase technical exchanges in the oil
sector, and thereby promote future international
exchanges of technologies. It is also expected tocontribute to the development of infrastructures inthe downstream sector in oil-producing countries,
and ultimately play a significant role in securing oil
resources and stable supplies of energy. For thesereasons, JCCP is fully supporting the new award.
An overview of the award is provided below, asa prime example of strong collaboration between
JCCP and organizations to which JCCP is directing
its cooperation efforts in recent years.

1. Background to Establishment of
the Award
In February 2007, JCCP arranged a mission
for experts from universities and industries inJapan to tour the sites where technical cooperation
projects are being implemented in Middle East oilproducing countries. A university professor who
participated in the mission proposed the use of anaward hosted by JPI, an authority in its field, as ameans of facilitating technical transfers to Middle
East oil-producing countries. In response to this
proposal, JCCP held a series of discussions with
the Ministry of Economy, Trade and Industry and8• Topics •JPI, as well as consulted in detail with the professor
who proposed the idea, and the award was finallybrought to fruition this fiscal year.
JPI itself is actively involved in technicalcooperation projects with Middle East oil-producing
countries. In fact, it has been implementing catalyst
seminars with King Fahd University of Petroleum
and Minerals (KFUPM) in Saudi Arabia, since1991. JPI was considered the ideal host of the newaward, because it possesses abundant experienceand expertise in bestowing awards, such as the JPIAward and the Noguchi Memorial Award. It wasalso fortunate that JPI had already been planningto create a special commemorative award to bepresented as part of its 50th anniversary celebrations,and had set up a 50th Anniversary Commemorative
Awards Subcommittee for that purpose.

2. Composition of the Award
The award will be composed of the Japan
Petroleum Institute Award for Invaluable
International Cooperation and the Japan Petroleum
Institute Award for International Cooperation
on Technology. The Japan Petroleum InstituteAward for Invaluable International Cooperation
will be presented to individuals or organizations
in both oil-producing countries and Japan, whohave together made a significant achievementin transferring oil-related technologies to oilproducing countries, or in developing humanresources in oil-producing countries by means oftechnical exchanges. The Japan Petroleum InstituteAward for International Cooperation on Technology
will be presented to individuals or organizations inboth oil-producing countries and Japan, who havetogether made a significant achievement in the
research and development or improvement of oilrelated technologies in oil-producing countries. In

JCCP NEWS No. 101 August 2008

other words, the former focuses on “people” whohave contributed to technical exchanges between
Japan and oil-producing countries, and the latter,on “technologies.”

3. Presentation of the Japan
Petroleum Institute Award
for Invaluable International
Cooperation
The JPI 50th anniversary ceremony was heldon May 15, 2008. Mr. Toshikazu Kobayashi, Vice
President of Nippon Oil Corporation and newly
appointed president of JPI, presented the Japan
Petroleum Institute Award for Invaluable International
Cooperation and commemorative gift to Dr. Sahel N.
Abdul-Jauwad, Vice Rector for Applied Research at
KFUPM, who attended the ceremony on behalf of
H.E. Dr. Khaled S. Al-Sultan, Rector of KFUPM,
and Dr. Tatsuaki Yashima, Professor at Nihon
University Advanced Research Institute for Scienceand Technology. H.E. Dr. Khaled S. Al-Sultan wasrecognized for his leading role in promoting technicalexchanges with Japan and in developing humanresources in Saudi Arabia through the technicalexchanges. Dr. Yashima was recognized for his many
years of effort in promoting international exchanges
between Japan and Saudi Arabia/Kuwait, as chairmanof the JPI Overseas Cooperation Subcommittee.
Upon receiving the award, Dr. Abdul-Jauwad

Mr. Toshikazu Kobayashi, President of JPI, presenting
the Japan Petroleum Institute Award for Invaluable
International Cooperation to Dr. Sahel N. Abdul-Jauwad,
Vice Rector of KFUPM(Front row, from right) Dr. Sahel N. Abdul-Jauwad,
Vice Rector of KFUPM, and Dr. Tatsuaki Yashima,
Professor at Nihon University Advanced ResearchInstitute for Science and Technology(Back row, from left) H.E. Mr. Faisal H. Trad,
Ambassador of Kingdom of Saudi Arabia to Japan,
and Mr. Toshikazu Kobayashi, President of JPI

expressed his appreciation for the award, stating thatthe prestigious award holds great significance as astrong incentive to continue contributing to building
a fertile relationship with Japan. Dr. Yashima also
thanked JPI for the award, and affirmed that it would
certainly be instrumental in building constructive
relations between the GCC countries and Japan.

4. Strengthening Cooperation with
Oil-Producing Countries
As Dr. Abduljauwad stated, the Japan Petroleum
Institute Award for Invaluable International
Cooperation was interpreted as a strong incentive
for oil-producing countries to strengthen cooperative
relations with Japan. The award is therefore expected
to strengthen collaboration not only between oilproducing countries and JCCP, but also between
those countries and other relevant organizations in
the oil industry.
Unfortunately, there were no recipients of theJapan Petroleum Institute Award for International
Cooperation on Technology this time around.
Continued efforts need to be made to establish arecord of outstanding performance.
(by Toyonori Uemura, Administration Dept.)

JCCP NEWS No. 101 August 2008

• Topics •9

Topics

Article on HS-FCC Process(High-Severity Fluid Catalytic Cracking)in Saudi Aramco Journal of Technology
JCCP and King Fahd University of Petroleum
and Minerals (KFUPM) in Saudi Arabia havecarried out a number of years developing the HSFCC (High-Severity Fluid Catalytic Cracking)technology, with the cooperation of Nippon Oil
Corporation and Saudi Aramco. Studies of thetechnology first began with a 0.1 b/d pilot plant,
and thereafter moved on to test operations of a
30 b/d demonstration unit. Following a series of
feasibility studies on increasing the scale of the unit,
significant advancements have been made toward
the construction of a commercial-scale unit. Today,a new project is underway, for the construction of a
3,000 b/d semi-commercial unit.
HS-FCC is an innovative process that aims tomaximize the production of propylene and otherpetrochemical feedstock, by using a down-flow
reactor, instead of the conventional up-flow system.
It is attracting widespread attention as a new
solution to the needs of the times.
The new process was introduced in a leading
article in the Spring 2008 issue of Saudi Aramco
Journal of Technology. Titled “Developmentof a New Oil Process: From Experiments toCommercialization,” the article describes thecharacteristics of the HS-FCC process, results oftests conducted using the 0.1 b/d pilot plant, resultsof test operations of the 30 b/d demonstration unit
carried out at Saudi Aramco’s Ras Tanura Refinery,
analyses of those results, and future plans for its
commercialization. The cover of the journal features
a photo of the 30 b/d demonstration unit constructedat the Ras Tanura Refinery. On the following pageis an article on receiving the Noguchi Memorial
Award. Last year, the award was presented to
JCCP, KFUPM, Nippon Oil Corporation, andSaudi Aramco by the Japan Petroleum Institute(JPI), in recognition of their efforts in the HS-FCC
development project. The article is accompanied
by a photo of Mr. Khalid Al-Buainain, Senior Vice
President of Saudi Aramco, and Saudi Aramcoengineers who have participated in the project. The
journal’s special focus on the HS-FCC process isa clear indication of the extreme importance that
Saudi Aramco attaches to the development of thetechnology.
<by Minoru Horike, Technical Cooperation Dept.>

The HS-FCC Process

10 • Topics •Cover of Saudi Aramco Journal of Technology
The photo is of the 30 b/d demonstration unit

JCCP NEWS No. 101 August 2008

Article on receiving the JPI Noguchi
Memorial Award

Personnel
Exchange

Implementation Report on
Petroleum Marketing Regular Course(TR-2-08)
1. Objective
From April 3 to 22, 2008,
JCCP implemented a 14-day
JCCP-initiative regular course on“Petroleum Marketing” (TR-2-08).
Intended for management-level
employees, the course wasaimed at providing wide-ranging
knowledge of Japan’s intense
petroleum marketing situation,
which may help participants
improve their oil business andoperations in their respective
countries. Specifically, the course covered topics
in the stable supplies of crude oil and oil products,
effective distribution systems of products, thecompetitive oil market, and marketing activities
at service stations. The course also included
management programs.

2. Participants

Iran
UAE
KuwaitYemen
Nigeria
Libya
MexicoIndonesia
Vietnam
PakistanThailand
China
Myanmar13 countries

Organization
NIOPDC
ADNOC
KNPC
YPC, YOGC
NNPC
NOC
PEMEX
MIGAS
PETROVIETNAM
APL
BPPC
CNPC
MPPE

mostly relatively young mid-level managers, of an
average age of 37.5 years. In terms of region, 7 werefrom the Middle East, another 7 from Asia, 2 fromAfrica, and 1 from South America. Amid an open
and friendly atmosphere created by their youthfulenergy, the participants applied themselves to thecourse programs by mutually helping each other.

3. Program Structure

Seventeen applicants from 13 countries wereselected from among 26 applications received for the
12-member course. The selected participants wereCountry

At JCCPAge
47, 4830, 3336
27, 284143
38
24, 30
47
29
40
42
54
17 participants(1) Lectures at JCCP
1) Japan’s Oil Industry
This lecture introduced Japan’s oil industry
from three perspectives: the significance of stableoil supplies to Japan, the characteristics of Japan’s
oil industry, and the fierce competition in gasoline
marketing. The participants gained an understanding of
how important it is for Japan to secure stable suppliesof oil, and seemed to take the issues of efficiency andcorporate rationalization as issues they themselves
would need to address in the near future.
2) Global Energy Situation
Global energy trends were examined in reference

JCCP NEWS No. 101 August 2008

• Personnel Exchange Programs • 11

to global-scale environmental issues related tooil, liquefied natural gas (LNG), nuclear power,
coal, and water and wind energies, using extensive
data. As global energy issues are common to all
countries, the participants listened to the lecturewith apparently strong interest.
3) Management by Rational Thinking Process
The lecturer’s outstanding presentation skills
and extremely helpful study materials engaged theparticipants in a two-day program on management
skills training, which focused on analyzing andsolving problems based on a Rational Thinking
Process (RTP). The program included small-group
discussions and presentations, which provided
participants an opportunity to exchange opinions
and deepen mutual understanding with each other,and was also meaningful in this respect.

Group discussion at JCCP

4) Marketing of New Automotive Fuels
The present state of R&D advancements andfuture commercialization of new automotive
fuels was analyzed and presented in reference toenvironmental, supply, and cost issues, in an easy
to understand manner. The participants showed
particularly strong interest in new bio-fuels.
5) The Asian Oil Market
This lecture was organized in response toparticipants’ requests for a professional lecture on
global issues. It covered recent trends in the Asianoil market and crude oil prices, from the professional
perspectives of supply-demand trends, the futures
market, and crude oil price formulas.

12 • Personnel Exchange Programs •6) History of Japanese-style Management
The background to Japan’s economic growth
was analyzed and lectured in an easy to understandmanner, from the perspective of human resource
management. The lecture provided a comprehensive
view of Japanese-style management, by focusing on
the Japanese mentality, the teamwork spirit sharedby all Japanese, and the lifetime employment andseniority systems, which are two representative
personnel management systems unique to Japan.
The subject matter was explained in reference
to Japan’s culture and history, and was highly
appreciated by the participants.
(2) Onsite Training
1) Cosmo Oil Co., Ltd., Head Office
From the standpoint as the head office of anoil company, staff members of the office provided
detailed lectures on oil marketing activities,
including dealer countermeasures, determination ofgasoline prices, strategies and profit management ofservice stations, and credit card policies. The staff
members also outlined the crude oil procurement
and tanker transportation systems in Japan. The
highly practical lectures elicited many responses
from the participants.
2) Nippon Oil Refining Co., Ltd.,
Mizushima Refinery
Following a presentation on the overview of therefinery and its oil refining facilities, the participantsreceived lectures on LNG acquisition, marketing,storage, and shipment activities from a member ofAt Nippon Oil Refining’s Mizushima Refinery

JCCP NEWS No. 101 August 2008

Mizushima LNG Co., Ltd., a company which has
begun marketing LNG.
The participants also toured the huge LNG
storage facility constructed onsite at the refinery, andthe No. 3 power generation unit at the Mizushima
Thermal Power Station of Chugoku Electric Power
Company, which has recently converted its fuel to
LNG. The refinery offered a commanding viewof the Mizushima industrial complex, Japan’slargest complex, which seemed to duly impress all
participants.
3) Cosmo Oil Co., Ltd., Hiroshima Branch Office
As a branch office at the frontline of marketing
activities, members of the Hiroshima Officeprovided training on the multifaceted aspectsof gasoline marketing, including branch office
functions, service station (SS) marketing strategies,
SS styles, and the order-receiving system. After thelectures, the participants visited one of the branch
office’s newest self-service SSs and obtained handson experience in inventory control, ordering system,
and feeding gasoline. The self-service SS and thesales of non-fuel products at SSs appeared to be newconcepts to many of the participants.

Onsite training at a service station

4) Uyeno Kosan Ltd., Kawasaki Office
Uyeno Kosan is a company with a familyowned management that goes back 130 years. It
has made many significant achievements during
its long history in the oil product transport sector.
The participants first received lectures on thecompany’s history and management, transport of oil
products, and safety activities, then visited an onsite
training center for tank truck drivers, to observe

demonstrations of actual safety operations.

A driver demonstrating physical finger-pointing
confirmation at Uyeno Kosan

5) San-ai Oil Co., Ltd., Haneda Office
San-ai Oil is the sole company possessing jet fuelstorage and shipment facilities at Haneda International
Airport. After learning about the jet fuel refuelingsystem, the participants toured the integrated control
room, the offloading facility from small tankers, andfuel storage and shipment facilities. They also had
the opportunity to step inside a high-security apronof the airport and witness thoroughly standardized
finger-pointing confirmation procedures for safe
refueling operations.

In the control room of San-ai Oil’s Haneda Office

4. Summary
The participants of the marketing course allvaried in the types of oil they handle in their daily
work, such as crude oil, oil products, petrochemicals,
and petroleum gas, as well as in the departments inwhich they work, which included head offices,
refineries, and branch offices. Therefore, the

JCCP NEWS No. 101 August 2008

• Personnel Exchange Programs • 13

evaluation forms they filled out at the end of thecourse reflected their diverse interests and opinions
regarding the course content.
All participants have naturally come to the course
prepared to apply their own experience and standardof values. After attending the course, we believe
they were able to gain a better understanding of thedifferences between their respective countries andJapan, and become a better judge of what is reallybeneficial and important to their countries, to theircompanies, and to themselves, by comparing thosedifferences.
Participants from 13 different countries spent
18 days in Japan studying together and interactingwith each other. They visited many Japanese privatecompanies and met with many Japanese people.
It was undoubtedly a precious experience for allof the participants. It was also rewarding for us
as course organizers to know that the participants
not only acquired specialized knowledge andtechnologies from the course, but also reconfirmed
the importance of personal exchanges.
Finally, we would like to thank all external
lecturers and everyone at companies where onsite
training programs were held, for their cooperationin implementing a highly fruitful and meaningful
course.
<by Yasuo Tabei, Training Dept.>

Participant’s Voice
Upgrading Processes of Heavy Oil(TR-3-08：April 3 – April 22, 2008)
Ms. Imoba Onitsha (NNPC / Nigeria)

On behalf of the TR-3-08 participants, I wish to
express our deepest appreciation to the entire JCCP
staff, and in particular, to Mr. Kojima, Executive Directorof JCCP, Mr. Kubota, the coordinator of the course, andhis assistant, Mr. Kamijyo, for their love, support andguidance throughout our stay in Japan.
The course on “Upgrading Processes of Heavy Oil”
came at a vital time, when crude oil is becoming heavier
due to increased sulphur levels. It was also significant inthat it focused on measures for minimizing emissionsof NOx, SOx, and other pollutants that are produced
during heavy oil processing, as a means of protecting
our lives and conserving the environment.
We each came to the course expecting to learnmuch from Japan, as the country has begun producing
sulphur-free fuels in 2005 by applying heavy oil
upgrading processes, and has achieved, among otherthings, clean air. Indeed, we acquired a wealth ofknowledge and expertise through presentations andsimulations, thanks to the hardworking efforts of the
JCCP staff.

14 • Personnel Exchange Programs •The course was one of the first regular courses ofthe 2008 fiscal year, and was held at a time when theweather was favorable for exploring the beauty ofnature in Japan. We were lucky to experience little cold
and rain, and extremely fortunate to see the sakura
cherry blossoms.
I especially enjoyed our field trips. We traveled to
six cities in Japan, via Shinkansen and other JR trains.

At the Kiyomizudera Temple in Kyoto

JCCP NEWS No. 101 August 2008

Participant’s Voice
From Tokyo, we traveled to Iwakuni, Kokura, Hiroshima,
Kyoto, Yokohama, and Satte. We visited leadingrefineries and a catalyst maker in Kokura; the Cosmo
R&D Center in Satte; spent an enjoyable moment at thebay side amusement park in Yokohama; visited temples
and the famous Kintai Bridge in Iwakuni; and attended
a tea ceremony and a Japanese traditional dance showfeaturing beautiful women in kimono attire at theGion Corner Theater, and visited the Golden Pavilion
and a handcraft center in Kyoto. However, Hiroshima
was by far the most beautiful, attractive, historic andeducative place I have ever visited. Despite the war,
I was surprised to see that the city has been entirely
rebuilt into a modern city. The Atomic Bomb Dome
still remains, however, as a symbol of the strength andcourage of the Japanese people.
As the saying goes, “good times don’t last forever,”and it is now time for us to say goodbye. Although
words alone can hardly express our heartfelt gratitude, I
would like to say thank you very much from the bottomof my heart, and hope to see you again, perhaps nextin Nigeria. Arigato Gozaimashita.

Human Resource Management (HRM)(TR-07-08: May 27 – June 13, 2008)
Ms. Mahsa Samavati (NIORDC / Iran)J......... Justice
A........ Activity
P........ Punctuality
A........ Administration
N........ Nature
The above words describe what I experienced inJapan with all my senses.
The Japanese are great artists. I say this, because
I believe Human Resource Management is not justa science, but also an art. Special trips from Tokyo
to Kyoto, Hiroshima, Sakaide, and Yokohama
added color and texture to the course, to create aprecious experience. We gained a comprehensive
view of Japanese-style management through visits
to transportation and engineering companies andrefineries, and understood that it derives from theJapanese people’s sincere attitude toward work. I callthis “faithfulness.” It is the spirit of being faithful torules, people, time, and to oneself.
I will forever cherish my memories of the course,
not to mention the Japanese expressions that we usedfrequently, such as “Hikatta?” every time we posed totake a group photo!
This course provided a wonderful learning

experience. However, I would like to make a suggestion
as a senior worker in the IT field. That is, perhaps
JCCP could offer technical management courses
such as IT Management, Project Management andProductivity Management in the near future, as there
is an increasing trend in the IT field to offer diverse
management courses for different skill levels.
Finally, I wish to extend my special thanks to Mr.
Hoshino, Mr. Tabei, and Mr. Kojima, Executive Directorof JCCP. My appreciation goes beyond words. May
you always be happy and healthy. Domo arigato
gozaimashita.

At the Sankeien Garden in Yokohama

JCCP NEWS No. 101 August 2008

• Personnel Exchange Programs • 15

JCCP Regular Courses Completed in April – June 2008
TR-1-08
Online Analyzer
Period:		 April 3 – April 18, 2008
No. of participants:		 13Country of participants:		 China, Indonesia, Iran, Libya, Nigeria,
Pakistan, Qatar, Saudi Arabia, Vietnam,
Yemen
TR-2-08
Petroleum Marketing
Period:		 April 3 – April 22, 2008
No. of participants:		 17Country of participants:		 China, Indonesia, Iran, Kuwait, Libya,
Mexico, Myanmar, Nigeria, Pakistan,Thailand, UAE, Vietnam, Yemen
TR-3-08
Upgrading Processes of Heavy Oil
Period:		 April 3 – April 22, 2008
No. of participants:		 14Country of participants:		 Brazil, Colombia, Indonesia, Iran, Libya,
Myanmar, Nigeria, Pakistan, Vietnam,
Yemen
TR-4-08
Essential Petroleum Refining for Process Engineers
Period:		 May 13 – May 30, 2008
No. of participants:		 13Country of participants:		 Bahrain, Colombia, Indonesia, Iran,
Malaysia, Mexico, Qatar, Saudi Arabia,
Vietnam, Yemen
TR-5-08
Diagnostic Techniques and Maintenance for Rotary Machinery
Period:		 May 13 – May 30, 2008
No. of participants:		 15Country of participants:		 Colombia, Indonesia, Iran, Kuwait,
Malaysia, Mexico, Oman, Qatar,
Saudi Arabia, Vietnam, Yemen
TR-6-08
DCS Fundamentals and Applications
Period:		 May 27 – June 13, 2008
No. of participants:		 14Country of participants:		 Indonesia, Iran, Mexico, Nigeria, Pakistan,
Russia, Saudi Arabia, UAE, Vietnam, Yemen

TR-7-08
Human Resource Management (HRM)
Period:		 May 27 – June 13, 2008
No. of participants:		 19Country of participants:		 Colombia, Indonesia, Iran, Kazakhstan,
Malaysia, Mexico, Oman, Pakistan,Philippines, Qatar, Russia, Saudi Arabia,
Thailand, UAE, Vietnam
TR-8-08
Refinery Management
Period:		 June 3 – June 17, 2008
No. of participants:		 16Country of participants:		 Colombia, Indonesia, Iran, Kuwait, Libya,
Malaysia, Myanmar, Nigeria, Oman, Qatar,
Saudi Arabia, Thailand
Total: 121 participants
16 • Personnel Exchange Programs •JCCP NEWS No. 101 August 2008

Reference  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >Overview of the JCCP Country-Specific Action Plan
Working Group for Country-Specific Action Plan
JCCP established a special Working Groupin FY2007, and through the group, formulated aCountry-Specific Action Plan for major counterpart
oil-producing countries in the Middle East during thefirst year of its establishment. Through this initiative,
JCCP aims to predict changes in the oil downstream
sector in each of those countries based on theirsocio-economic and oil production situations, and toaccurately assess specific considerations that would
be necessary for implementing future JCCP activities.
The action plan is a compilation of the results ofinvestigations in each country, but this article will
identify and examine issues that are common to all
Middle East oil-producing countries.

1. Background
Since its founding in 1981, JCCP has engaged in avariety of activities with the objective of contributing
to securing a stable supply of oil. However, during
the 27 years since its founding, major changes havetaken place in the environment surrounding JCCP.
To accurately assess the relevance of its activities
in light of those changes, JCCP organized a Review
Panel in FY2005, and has set out to restructure its
activities based on the panel’s proposals.
One of the proposals of the Review Panel was toimplement activities that more closely correspondto specific needs in each counterpart country.
The panel recommended the establishment of theWorking Group for Country-Specific Action Plan,
and called for a close assessment of each country’s
needs in conjunction with the Downstream Survey
in Oil-Producing Countries, which is one of JCCP’sconventional survey activities. In reference to thosespecific needs, the panel proposed the compilationof an action plan containing considerations thatshould be given to each country when implementing
future JCCP activities. As proposed, the Working
Group compiled the Action Plan for Middle East
Oil-Producing Countries, as introduced below.

2. Study Approach
Middle East oil-producing countries depend
almost entirely on oil and natural gas for theirprimary energy supplies. The oil downstream sector1
is largely responsible for responding to the socialchanges that occur within each country, such as
economic development, population growth, andincreases in energy consumption. Therefore, needsin the oil downstream sector are closely linked withsocial changes occurring in each Middle East oilproducing country, and to assess those needs, it isessential to gain an accurate understanding of eachcountry’s social background.
Based on the survey of social changes in
Middle East oil-producing countries, this study
aimed to identify needs for JCCP cooperation ineach country, by examining and comprehensively
analyzing the oil refining and technical issues they
are facing. (Fig. 1)
1 The oil downstream sector means all activities from crude
oil refining to the delivery of oil products to consumers,
but mainly refers to the oil refining, physical distribution,and marketing aspects of oil products.
Technical Needs
for JCCP

Integrated Analysis of
Future Oil-Producing Countries

Technical Problems
in the Oil
Downstream Sector

Meeting with Refineries
Refinery Process Configurations
Product Qualities
Managerial Issues

Future of Refineries

Demand Forecast of Oil
Refinery Capacities
Crude Oil Availability

Future of Society

Future Population
Industrial Development Policy

Fig. 1 Approach to Technical Needs of
Oil-Producing Countries

JCCP NEWS No. 101 August 2008

• Reference • 17

3. Summary of Study Results(1) Social Background
Among the social changes that are occurringin Middle East oil-producing countries, the recent
study focused on rapid population growth as thegreatest factor impacting the oil downstream sector.
Fig. 2 shows demographic trends in Middle East oilproducing countries and Japan, from 1950 to 2050.
In the wake of the two major oil crises that haveoccurred in the 1970s, Middle East oil-producing
countries have enjoyed large growth in revenues
from oil exports, and took the opportunity to
improve social welfare. This led to rapid population
increases in those countries.
In 2005, the population in Japan and the Middle
East oil-producing countries was basically the same,around 130 million, respectively. By 2050, however,the population in Middle East oil-producing

countries is expected to increase almost two-fold,to 250 million.
This year marks the 35th year of the first oilcrisis. The population born after the oil crisis hasreached their thirties. They have gotten married,
started their own families, and are now bringing up
the next generation. The increase in population canbe expected to still continue for some time.
(2) Energy Consumption
Rapid population growth naturally leads toan increase in energy consumption. In 2006, oilconsumption in Middle East oil-producing countries
totaled about 6 million b/d, already surpassing that inJapan. It is important to realize that those countries
are major oil-consuming countries, while at the sametime being oil-producing countries. Fig. 3 showschanges in crude oil production, oil consumption,and the rates of internal oil consumption in Middle

3

Oil shock

The post oil shock generation
has reached their 20s and early 30s.

GCC
countries

100 million people

2

30 years

Iraq

Japan

1
Iran

0

1950

1960

1970

1980

1990

2000

2010

2020

2030

2040

2050

Sekai Kokusei Zue (2003)

Fig. 2 Population Growth in Middle East Oil-Producing Countries
60

30,00025,00050

Crude oil production in the Middle East40

15,00030(%)

1,000 b/d

20,000Rate of internal oil consumption (%)
10,000

20

5,000

10
Oil consumption in the Middle East

0
1965

1970

1975

1980

1985

1990

1995

2000

2005

0

BP Statistical Review of World Energy June 2007

Fig. 3 Oil Consumption of Middle East Oil-Producing Countries
18 • Reference •JCCP NEWS No. 101 August 2008

East oil-producing countries. Oil consumption isseen increasing steadily each year, accompanying
increases in population and improved living
standards. Crude oil consumption rate, which had
long been hovering around the 20% level, began togradually increase from 2000, and has reached 24%
in 2006. A continuation of this trend is expected
to eventually impose constraints on exports to oilconsuming countries.
(3) Consumption of Oil Products
Among all oil products, Middle East oil-producing
countries mainly consume automotive fuels (gasoline
and diesel fuel) and fuel oil (heavy oil) that are needed
for power generation and water desalination. Energies
for use by automobiles, electric air conditioners, anddrinking water supply systems have direct bearing
on people’s lives, and can be expected to further
increase, along with continued population growth.
(4) Issues Facing Refineries
To respond to rapid increases in demand for oil
products, large, new refineries need to be constructed.
Middle East oil-producing countries have plans toconstruct refineries with capacities of about 3 million
b/d, over the 10 years from 2005 to 2015. These
refineries are expected to include advanced processunits, such as a heavy oil cracking unit and diesel
fuel deep desulfurization unit, as they are needed tosatisfy new environmental standards.
The oil downstream sector in Middle East oilproducing countries must therefore enhance theirtechnologies to a higher level than before. They
must develop their capacities to plan and designrefineries, manage construction projects, operateadvanced processes, and support processing andcatalyst technologies, all in a short 10-year period.
(5)Future Direction of Middle East
Oil-Producing Countries
The Action Plan also takes a look into the near
future, and discusses the direction in which therefineries of Middle East oil-producing countries
should hereafter proceed. Fig. 4 shows the value
structure of world class refineries.
Middle East oil-producing countries hope tocreate as much added value as possible, and selloil at the highest possible values. Behind thisintention lies a sense of crisis stemming from thefact that oil resources are limited and are daily
dwindling toward depletion, and the desire to create
employment opportunities for the young population,
by expanding the scope of the oil industry anddeveloping secondary and tertiary processing
industries.
The key to increasing value lies in cracking heavyoil. Heavy oil is cheaper than crude oil, but has
several disadvantages. Even so, as a hydrocarbon,
heavy oil is apt to have a lot of potential to be used
for advanced applications. Conventionally, heavy oil
has been burned in a boiler, converted to heat, andused as energy for generating power and desalinatingwater. In the future, however, heavy oil must be
cracked, so that it may be used as blending stock
for producing gasoline and diesel fuel. By cracking
heavy oil to produce gasoline blending stock, heavy
naphtha, which have been previously used as agasoline blending stock, can instead be applied tothe petrochemical value chain. Consequently, thevalue of hydrocarbons would increase.
Additionally, instead of depending on heavy oil,other forms of energies could be used for power
generation and water desalination. The introductionof new and alternative energies such as solar energy
and fuel cells, as well as the development of newenergy-saving technologies, can be expected toeventually replace oil with non-oil forms of energy.
In an interview, an executive officer of a nationaloil company in a Middle East oil-producing country
called this type of comprehensive refinery thataims to increase the value of oil, as a “world classrefinery.” Another executive spoke about energy
systems “beyond oil,” while still others spoke about
the need for technical cooperation in introducing
solar energy and other forms of energy.
The study helped clarify the increasing awarenessin Middle East oil-producing countries, of converting
oil to gasoline, kerosene, and diesel oil as much as
possible, instead of simply burning it to produce heat,and to use those oil products as transportation fuelinside and outside the respective countries, and as
feedstock for higher-value petrochemical products.

JCCP NEWS No. 101 August 2008

• Reference • 19

Engineering
plastics

Value
Engineering plastics

Special chemicals
Special chemicals
Polyolefins
Petrochemicals

Olefins
Aromatics

Oil products
Crude oil

LPG

NaphthaGasoline

Kerosene Diesel
Fuel oilPower generation
Water desalination

New energy
Alternative energy

Fig. 4 Value Structure of a World Class Refinery

4. Needs for JCCP Cooperation
Based on the above results, the needs in Middle
East oil-producing countries for JCCP cooperation
can be divided into the following three categories.
1) Upgrading refineries
Providing technical support for upgradingrefineries, such as through the transfer of heavy oil
cracking technologies, petrochemical integration,and quality improvement
2) Strengthening the management foundation
Technical support for strengthening themanagement foundation in the oil downstream
sector, by transferring technologies for planning anddesigning advanced refineries, managing projects,
ensuring safe and stable operations, and increasing
cost competitiveness when exporting petrochemical
products to the global market
3) Human resource development
Support for the development of human resources,
and particularly of young leaders, so that eachcountry can independently accomplish the abovetasks

20 • Reference •5. Significance of theCountry-Specific Action Plan
The Action Plan provides a sound basis for
conducting a detailed assessment of needs in Middle
East oil-producing countries.
JCCP will support refineries in Middle East oilproducing countries, in their effort to become worldclass refineries, in the form of training programsand technical cooperation projects. By helping thesecountries control their internal oil consumption,achieve advanced utilization of oil, and maintainsteady oil exports, JCCP aims to contribute tosecuring stable supplies of oil.
From FY2008, JCCP has renewed its efforts basedon the Action Plan. It is strengthening dialogues with
Middle East oil-producing countries, and is working
to implement activities that more specifically andeffectively respond to the needs of each country.
In the future, the Action Plan should probe deeper
into situations in Middle East oil-producing countries,
to increase their accuracy, as well as to better addressenvironmental changes in each country. It should
also be formulated, in sequence, for oil-producing
countries in regions other than the Middle East.
Toward these ends, the Working Group will continue
with its investigations this fiscal year.

JCCP NEWS No. 101 August 2008

Reference  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >  >“The 26th JCCP International Symposium”<Speech Summaries and Closing Address>“The 26th JCCP International Symposium” was held on February 6 and 7, 2008 (see JCCP NEWSNo. 100, pp. 3-7 for a general report of the event).
Summaries of the keynote speech by Mr. Akira Idemitsu, then-President of JCCP, the guest speech
by Mr. Waleed H. Albedaiwi, General Manager, Saudi Petroleum Ltd., and the closing address by Mr.
Mikio Kojima, then-Executive Director of JCCP, are provided below.
Mr. Idemitsu gave a strong message that “we have an important responsibility to the next generation,
to reconsider the role of the oil downstream sector in ensuring a steady and stable supply of oil formany years to come.” Mr. Albedaiwi likened the relationship between oil-producing and oil-consuming
countries to “the two sides of the same coin,” and emphasized that “just as it is impossible to split
the obverse side of a coin from the reverse, there is no way to decouple oil-producing countries fromoil-consuming countries.” Mr. Kojima shared his conviction that “oil downstream sectors in both oilproducing and oil-consuming countries stand on common ground, and are in a position to serve as abridge of cooperation between the two.”<Keynote Speech>“The Role of the Oil Downstream Sector
from the Perspective of
Stable Energy Supply”
Akira Idemitsu
Then-President, Japan Cooperation Center, Petroleum
1. The Role of the Oil Downstream
SectorWhen considering the issue of stable oil supply,
we can see that the role of the oil downstream
sector is becoming ever more important. From theperspective of crude oil supplies alone, oil-producing
and oil-consuming countries can only acknowledge
differences in their respective positions within theoil industry. However, the oil downstream sectorof both oil-producing and oil-consuming countries
bear a common responsibility of refining crude oiland supplying oil products to consumers. From theperspective of oil product supplies, therefore, wefind that there are many issues to be solved throughmutual cooperation.

JCCP NEWS No. 101 August 2008

• Reference • 21

oil supply meant a stable supplyof crude oil. Since 2000, however,global refining capacity has been
shrinking, and securing sufficient
refining capacity, in addition
to securing a stable supply of
crude oil, is becoming ever more
important, in ensuring a stablesupply of oil products.
We w h o w o r k i n t h eoil downstream sector must
expand refining capacity, but
unfortunately, refining margins
Mr. Akira Idemitsu delivering his keynote speech
are still way too small from whichto construct grassroots refineries*
The oil downstream sector manufactures oil and recover investment costs. As things stand, we
products and petrochemical products from crude cannot expect to recover investment costs by simply
oil. Depending on how we design the downstream continuing to build conventional refineries, nor are
sector, we can continue producing high-value oil we able to adequately respond to social demand for
products. However, if we make a wrong turn, we stable supplies of oil products.
may end up consuming crude oil merely as a lowTo secure a stable oil supply, we must increasevalue product. The oil downstream sector therefore the value of oil products and make effective use of
has an important responsibility in proposing how oil. Doing so could also help boost profitability. We
best we should utilize oil.
must create future visions and launch a new era of
Oil is a precious resource that must not be the oil downstream sector.
depleted by our generation. We must bear inmind that we have an important responsibility to 3. The Oil Downstream Sector in thefollowing generations, to reconsider the role of the
New Eraoil downstream sector.
Petroleum is different from other energy sourcesin many ways. Only petroleum can satisfy the huge
2. The Current State and Issues ofenergy demand in the automotive, aviation, andthe Oil Downstream Sector
other transportation sectors. As a petrochemical
Accompanying the rapid increase in demand raw material, it can also be used to produce various
for oil products since 2000, oil refining capacity types of plastics and chemicals. Coal, natural gas,
has been fast shrinking on a global basis. In fact, and nuclear energy can produce heat, but thesedemand for oil has already exceeded refining energy sources cannot be used to run automobiles,
capacities in Asian countries.
fly airplanes, nor produce textiles as chemical raw
Demand for oil is also growing at a significant material, as petroleum can.
rate in the Middle East, and oil-producing countries
Throughout the world today, various efforts arein the region are gradually becoming large oil- being made to develop automobiles powered byconsuming countries, at the same time.
new energy sources, such as hydrogen and fuel cell
We have experienced two oil crises during
the 1970s. This was a time when there were still * Grassroots refineries: Refineries built entirely fromscratchsufficient reserves of refining capacity, and a stable

22 • Reference •JCCP NEWS No. 101 August 2008

vehicles. In the future, we will need to rely on these
new technologies for power sources, and utilize
petroleum for higher-value applications.

4. Human Relationships are Eternal
AssetsFor 27 years since its founding in 1981, JCCP has
continued to promote technical exchanges with oilproducing countries. However, JCCP’s role is not
to provide solutions. Rather, it is to develop humanresources through technical exchanges.
The exchange of solutions is but a one-time
interaction, whereas human relationships are eternal
assets. JCCP training programs and technicalcooperation projects bring people together andprovide an opportunity for them to help eachother solve issues, based on friendship and trust.
Relationships that are built through such exchanges

are precious assets.
Rather than to simply provide opportunities fortechnical transfers, JCCP’s overriding goal since its
founding has been “to provide opportunities where
people come together to mutually grow with eachother and develop capacities to solve problems on
their own.”
Today, the role of the oil downstream sector is
becoming more important than ever. Given thissituation, JCCP is committed to making further
efforts to strengthen its relationships with oilproducing countries and contribute to ensuring
stable supplies of oil.
JCCP has been able to continue its activities
for 27 years, thanks to the kind understanding andstrong support from you all. I would like to close
my speech by asking for your continued cooperationin future JCCP activities.

<Guest Speech>“Toward Closer Collaboration
Between Oil Suppliers and Consumers:
Two Sides of the Same Coin”
Mr. Waleed H. Albedaiwi
General Manager, Saudi Petroleum, Ltd.
1. Current State of the Oil
Downstream Sector
At Saudi Aramco, we believe that some of
the most serious challenges facing the petroleum
industry have less to do with subsurface issues
than with above-ground considerations. Subsurface
issues are those relating to the upstream sector,
while above-ground issues are those relating todownstream issues.
Worldwide, demand for oil remains strong,and consumption is increasing. As a result, global
oil transportation networks are facing increasingstresses and strains.

The world’s refining capacity is stretched to its
limit. Crude oil supplies are growing heavier and

JCCP NEWS No. 101 August 2008

• Reference • 23

increasingly sour, though demand for products is
becoming lighter and whiter. To meet this demand,
substantial investment is required to upgrade
refineries, which leads to even higher prices for
consumers.
We are also seeing substantial increases in
the prices of raw materials, and a shortage ofexperienced engineers. These twin dynamics are
driving up investment costs. New investments are
becoming riskier, and investment decisions evenmore difficult.
The complex interaction of these various trends
is fueling oil price volatility. Certainly, today’s
prices cannot be explained by the supply-demand
fundamentals. Supplies are secure, and global
inventory levels are adequate, but crude oil prices
are seen hovering around the USD90 per barrel
level. To make sense of that fact, we must consider
the role that speculation plays in today’s oil markets.
A considerable influx of money is pouring into theglobal oil trade.

2. Search for a New“Producer-Consumer Relationship”
From a supplier’s perspective, it might be easy
to write off downstream issues as someone else’s
problem. However, we at Saudi Aramco believe that
downstream issues are of concern not only to oilconsuming countries, but also us to oil-producing
countries, as we all have a stake in the health of ourindustry as a whole.
Meaningful cooperation and collaborationmust begin with a reconsideration of conventional
producer-consumer relationships. In the past, wetended to put suppliers and consumers into opposite
camps, which are bridged by cooperative ties atbest, and divided by tension and mistrust at worst.
In this outdated view, however, a true joining offorces cannot be achieved. The fates of producers
and consumers are joined, and are inseparable.
In reality, producers and consumers occupy twosides of the same coin. Just as it is impossible tosplit the obverse side of a coin from the reverse,
there is no way to decouple oil-producing fromoil-consuming countries. Similarly, the upstream
24 • Reference •sector of the global oil industry cannot be separated
from the downstream sector, the supply destination.
As long as we continue to ignore the reality ofthe downstream sector and correlations in the oil
industry, we cannot bring the full weight of ourresources, capabilities and expertise to bear on thetask of providing sustainable energy solutions forthe future.

3. For the Healthy Development of
the Downstream Sector
At Saudi Aramco we believe that meaningfulprogress in the downstream segment is best achieved
by working closely with the world’s leading
firms.
Internationally, Saudi Aramco holds stakes inoil refining and marketing enterprises in the UnitedStates, Korea, China, the Philippines, and Japan.
Last December, we broke ground on an expansion of
the Port Arthur Refinery in the United States, whichis part of our Motiva joint venture with Shell. By
2010, the refinery will be the largest single refineryin the United States. In China, our joint ventureswith SINOPEC, the government of Fujian Province,and ExxonMobile began operations last year.
In the Kingdom, we are augmenting our existingrefining portfolio with work on a pair of newexport-oriented refineries. One is a joint venturewith ConocoPhillips, and the other, with Total. Bothrefineries are slated to begin operations in 2011.
Each will be a full-conversion facility configured
to refine Arab Heavy crude, with a nameplate
capacity of 400,000 barrels per day. This heavy
crude configuration will avail more lighter crude
for export to global markets, while also helping tonarrow the gap between current worldwide refining
capacity and tomorrow’s heavier, increasingly sour
global crude supplies.
The most ambitious projects in the Kingdom are
the integrated refining and petrochemical projects
being developed in Rabigh and Ras Tanura. The
first is a PetroRabigh joint venture with Sumitomo
Chemical. Saudi Aramco is supplying the projectwith 400,000 barrels per day of crude oil, 95 million
cubic feet per day of ethane, and 15,000 barrels

JCCP NEWS No. 101 August 2008

per day of butane. This feedstock supply will beprocessed by a state-of-the-art plant that includes
the world’s newest and largest high olefins fluid
catalytic cracker and an ethane cracker. Oncecomplete, PetroRabigh will produce 18.4 million
tons per annum of petroleum products and 2.4
million tons per annum of ethylene and propylenebased derivatives, and contribute to ensuring stablesupplies of petroleum and petrochemical products
inside and outside the country.
These projects combine Saudi Aramco’s massive
oil reserves, extensive production infrastructure, andexisting refining assets with our partners’ technicalexpertise and marketing networks. The integration
with petrochemical facilities will maximize thevalue of our existing refineries, and lead to anatural migration down the value chain for Saudi
Aramco. Furthermore, these integrated refining
and petrochemical facilities will form the hubs ofassociated industrial clusters, and play host to smalland medium-sized companies in the manufacturing,
services, and conversion industries.

Saudi Aramco is not trying to carry its downstream
load all by itself. Instead, we are working incollaboration with the world’s leading firms, withhigh expectations of their technical expertise,proprietary technologies, and marketing knowledge.
At the same time, we will continue to help ourpartners meet their obligations to their customers
and their wider societies.

4. In Consideration of Our 75-Year
HistoryThis year, Saudi Aramco is celebrating its 75th
anniversary.
We are taking the occasion to not only reflect
on the past, but also to consider the future of ourplanet’s energy and our role in shaping it.
We at Saudi Aramco and all of you occupy one
side of the same coin. Together, let us build an
oil industry that is remarkable, sustainable, andbeneficial for people around the world.

Mr. Waleed Albedaiwi, emphasizing how “we occupy two sides of the same coin”

JCCP NEWS No. 101 August 2008

• Reference • 25

<Summary and Closing Address>“The Oil Downstream Sector
as a Bridge of Cooperation”
Mikio Kojima
Then-Executive Director, Japan Cooperation Center, Petroleum

Mr. Kojima Mikio wrapping up the symposium and delivering a closing address

Before closing this 26th JCCP international
symposium, I would like to say a few words on behalfof JCCP. This year’s symposium has been held under
the theme, “The Role of the Oil Downstream Sector
from the Perspective of Stable Energy Supply—
The Necessity and Possibilities of International
Collaboration.” I would like to thank all guest
speakers, chairmen, panelists, and the audience, fortheir insightful and thought-provoking presentations
and discussions over the two-day event.

1. Stable Energy Supply and the Roleof the Oil Downstream Sector
JCCP organized this symposium based on two
propositions.
26 • Reference •The first proposition was that the oil downstream
sector can and should play an important role insecuring a stable supply of energy. Up to now,
discussions on stable energy supply tended to focus
only on upstream issues. However, today’s drastic
fluctuations in oil prices cannot be attributed to the
upstream sector alone. The downstream sectors
in each country also bear the responsibility of
responding both qualitatively and quantitatively
to the rapid increase in global demand for oil
products.
The second proposition was that the downstream
sector can act as a bridge of cooperation between
oil producing and consuming countries. The
downstream sectors in both oil producing andconsuming countries share the mission of refining

JCCP NEWS No. 101 August 2008

crude oil and providind efficient supplies of oil
products to domestic and global markets, while
effectively responding to changes in the demand
structure. Given the ever-increasing role of the oil
downstream sector today, we should realize thatthe downstream sectors in both oil producing andconsuming countries stand on common ground, in
terms of ensuring stable supplies of oil, rather thanfocus on their different roles. The oil downstream
sectors should join hands and make active efforts
to serve as a bridge of cooperation between oil
producing and consuming countries.
Through the keynote speech, guest speeches,and panel discussions, I believe we have reached
a common awareness that the downstream sectors
in oil producing and consuming countries needto look beyond their differences and cooperate inensuring stable supplies of energy. The two days of
discussions have helped us reach a consensus on thetwo propositions.
We have also agreed on the role of the oil
downstream sector in ensuring stable energy
supply, the main theme of the symposium. Firstly,
the downstream sector should strive to provide
stable supplies of oil products, by quantitatively
and qualitatively expanding refining capacities
in response to changes in the demand structure.
Secondly, efforts should be made to promote energy
conservation and increase energy efficiency not
only in the oil downstream sector, but throughout
economic society. Thirdly, the downstream sector
should fulfill its responsibility of providing stablesupplies of oil products by improving transportationmeans and stockpiling reserves. Fourthly, thedownstream sector should strengthen its earning
power, so that it may acquire investments, conduct

R&D activities, and develop human resourcesthat are needed to achieve the abovementioned
responsibilities.

2. New/Alternative Energies and the
Oil Downstream Sector
In the discussions, a number of speakers madereferences to biomass and solar energy technology, as
well as to other new and alternative forms of energy.
The introduction of new/alternative energy forms
may curb demand for oil products on the one hand,but may bring positive effects on the other hand. For
instance, the decrease in demand for oil products
may mitigate the responsibility of the oil downstream
sector to ensure stable energy supplies and allow
petroleum to be allotted to more advanced uses and to
those that are only possible with petroleum. I believethat new/alternative energies will become a common
issue that must be addressed by both oil producing
and consuming countries, in their efforts to develop
sustainable global warming countermeasures andother environmental measures in the future.

3. The Role of JCCPAt JCCP, we intend to continue our efforts tosolve issues and to establish friendly relationships
in the oil downstream sector, with the support ofoil-producing countries and relevant companies inJapan. This, I believe, is the best path to ensuring
stable supplies of energy to the world.
Finally, I would like to thank everyone for their
participation in this symposium, and wish to close
my address with hopes that we may meet again atnext year’s JCCP International Symposium.

JCCP NEWS No. 101 August 2008

• Reference • 27

Personnel Changes
Outgoing Personnel

Incoming Personnel

Toyonori UEMURA

Mitsuyoshi SAITO

Yuji NITO

Kazuhiro SUZUKI

Nobutaka SUMIKAWA

Kenji IKUSHIMA

Administration
Department

Training
Department

Technical
Cooperation
Department

Toru MORIYAMA

Keikoh SASAKI

Japan Cooperation Center, Petroleum (JCCP)
Headquarters
Sunshine 60 Building 58F, 3-1-1 Higashi-Ikebukuro, Toshima-ku, Tokyo 170-6058, Japan• Administration Department• Operations Department• Training Department• Technical Cooperation Department

TEL. +81-3-5396-6000
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TEL. +81-3-5396-6909
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FAX. +81-3-5396-6006
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Overseas Offices• Middle East Office#904, Al-Ghaith Office Tower, Hamdan St.,
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URL: http://www.jccp.or.jp

28 • Announcement •• Riyadh Office
Al-Dahlawi Building, King Fahad Rd., Tahlia St., Olaya,
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E-mail: webmaster@jccp.or.jp

JCCP NEWS No. 101 August 2008