ITOCHU goes into the petroleum products downstream business in Guam and Saipan
November 8, 2010
ITOCHU Petroleum Co., (Singapore) Pte. Ltd (“IPCS”), a company wholly subsidized by ITOCHU Corporation, has acquired newly allocated interest of IP&E Holdings, LLC (“IP&E”), which comprises 25% of the equity after capital increase.
IP&E reached an agreement to acquire Shell’s petroleum products retail business in November 2009, and the company conducts the business in Guam and Saipan under Shell’s brand. IP&E has high presence (※) on the business such as gasoline and diesel retail at service stations and fuel sale to commercial and aviation companies. Since IP&E was looking for a partner to expand their market and IPCS believes the islands’ potential for growth, we have been in discussions regarding the participation of IPCS into this venture and have reached an agreement.
As a part of our strategy in the segment of petroleum products trading, Itochu Corporation and IPCS have been keen to participate in the overseas downstream business to diverse our source of profits. As Itochu Group’s petroleum products downstream business, this is the third after the one in Japan and California State in USA, and we are looking to expand another new market through this company.
IP&E’s brief information
| Company | IP&E Holdings, LLC |
|---|---|
| CEO | Jose Ricardo Delgado |
| Corporate registration | Commonwealth of the Northern Mariana Islands (Saipan) |
| Yearly Sales | About USD 140million |
| Outline of the business |
Gasoline and diesel retail at 20 service stations in Guam and Saipan Fuel sale to hotels, power plants, airlines, ships, etc. |
- IP&E’s share (sales volume)
Guam ・・・ Service Station 32%、Hotel/Power Plants (Diesel) 59%、Aviation 64%
Saipan ・・・ Service Station 42%、Hotel/Power Plants (Diesel) 30%