ITOCHU Oil Exploration Co., Ltd. (CIECO) was established in 1972 to explore and develop hydrocarbon resources in Indonesia. During 1990's CIECO expanded its operation beyond Indonesia to acquire interests in three producing assets in UK North Sea and thereafter ACG oil fields in Azerbaijan while also entering a gas field development business in Algeria.
Since 2004, when its upstream oil and gas assets were transferred to its parent company ITOCHU Corporation, CIECO has provided technical support services and oil and gas project management knowledge to contribute to the acquisition of new upstream oil and gas assets as well as increasing reserves for the ITOCHU group. CIECO together with ITOCHU Corporation is also involved in Sakhalin 1 Project through holding shares of Sakhalin Oil and Gas Development Co., Ltd. which has a direct participating interest in the project.
Azerbaijan and UK North Sea are currently the core upstream oil and gas assets of ITOCHU group. ACG oil fields in Azerbaijan sustain steady production as profit center of the group. In UK North Sea, CIECO promotes Western Isles development project toward the start of production in 2017 and are promoting continuous exploration activities for future benefits.
In addition to aforementioned operation, we aim to expand our business by further developing our activities in Russia, exploring new acquisition opportunities in such area where ITOCHU group has substantial knowledge, and reinforcement of ITOCHU group's existing assets by working closely together with ITOCHU Corporation and fully utilizing its global business network.
While CIECO already holds technical staffs with rich experience for promotion of the oil & gas development business, we also encourage younger technical staffs by providing opportunities to experience business overseas and participate in the technical evaluation process. We also enhance other areas of expertise in E&P including accounting and project management. CIECO will continue to contribute to enlarge and sustain upstream oil and gas business of ITOCHU group, as well as making contribution to the energy security for Japan and development of those countries we engage with.
President & C.E.O. Akio Tanabe