Monday, 4th October 2010
In Business In Japan,
Exxon Mobil to cease Japan operations
Oil company Exxon Mobil is planning to sell the rights to Japanese marketing and distribution operations.
Yomiuri newspaper reports Exxon Mobil has a total of 4,688 gas stations in the country, which operate under the brands of Esso, Mobil and General. However, unnamed sources claim that the company no longer believes the Japanese market is worth pursuing.
It is understood that the tender procedure has already begun and that the sell-off of petrol stations will be in a phased regional form.
The success of fuel-efficient vehicles within Japan has seen local demand for petrol decline since 2004.
Last year, Exxon Mobil Japan reported a 34.4 per cent drop in sales in the 12 months to December 2008.
JX Nippon Oil & Energy, Japan's largest refiner, has confirmed it plans to reduce crude oil capacity in October by three per cent compared to 2009 levels due to continued weak demand.
Written by Susan Ballion.