Operating losses expected due to factors including the suspension of the facilities damaged in the fire that occurred at our Chiba oil refinery on April 16, 2006 are as follows.
1. Details of the accident
- Date of the accident
April 16, 2006 - Location of the accident
Our Chiba oil refinery (Address: 2 Goikaigan, Ichihara, Chiba) - Affected facilities
Vacuum gas oil desulfurization unit and hydrogen production unit No.1 and their auxiliary facilities - Current situation
Maintenance planned at the time of the fire including internal cleaning of the unit and replacement of catalytic agents is underway for the one of the two crude oil processing systems which has been shut down since the fire. However, this maintenance does not include the two units listed in 3. above. - Cause of the accident
Under investigation
2. Details of the losses caused by the accident
The effect of the accident on our profit and loss for the fiscal year ending March 2007 involves uncertain factors such as the time required for recovery and the means of securing an alternative product supply. However, at the present time, we expect the losses incurred by factors including the alternative product supply to amount to approximately 10 billion yen.
3. Progress up to now
| April 16 | Around 5:37 a.m. Explosion and fire found in the vicinity of the vacuum gas oil desulfurization unit and hydrogen production unit No.1 At 5:44 a.m. Reported to Ichihara City Fire Department Around 5:48 a.m. Announcement issued to defense services At 8:44 a.m. Confirmed that the fire was extinguished At 11:00 a.m. Comprehensive Disaster Countermeasures Office established in our Head Office |
|---|---|
| April 18 | Chiba Oil Refinery Accident Investigation Committee for the Vacuum Gas Oil Desulfurization Unit and the Hydrogen Production Unit No. 1 established |
| April 27 | First meeting of the Chiba Oil Refinery Accident Investigation Committee for the Vacuum Gas Oil Desulfurization Unit and the Hydrogen Production Unit No. 1 held |
4. Other matters
We would like to offer our sincere apologies for all the trouble and distress this incident has caused. As stated above, we established the Countermeasures Office (Chief: Masahide Furuzono, Executive Director) on the day the accident occurred and on April 18 the Accident Investigation Committee whose members include third-party academic experts, under which we are investigating the actual situation of the damage and cause of the accident and studying measures to prevent reoccurrence. We will publicize the results of our investigations and other information in a timely manner on our website.
We will continue to strengthen our management and control system to take every possible measure to prevent such accidents from reoccurring and strive to restore trust in our operations.
