Idemitsu Kosan Rejects Venezuelan Oil: Why Japan’s Refineries Can’t Process It

It's heavy, high in sulfur, and practically useless for Japanese refineries. Despite the geopolitical tremors caused by the Trump administration's recent military strikes in Venezuela, Japan's energy giants aren't rushing to fill the void with Venezuelan crude. Shunichi Kito, chairman of oil major Idemitsu Kosan, has explicitly labeled the use of Venezuelan petroleum as "highly impractical."

The Idemitsu Kosan Venezuela Oil Dilemma

In an interview with Nikkei Asia on January 7, 2026, Kito emphasized that the hurdles aren't just political—they're deeply technical. Venezuelan crude is notoriously heavy and contains significant amounts of sulfur. Most Japanese refineries are calibrated for the lighter, sweeter crudes typically sourced from the Middle East. Switching to Venezuelan supply would require massive capital expenditure to overhaul existing refining units.

For Idemitsu Kosan, the cost-benefit analysis simply doesn't add up. Even if the supply were abundant, the cost of processing it would erode profit margins in an already tight energy market.

Geopolitical Fallout and Supply Chain Resilience

While the world watches the fallout from U.S. military action, Kito remains confident that Japan's immediate crude procurement won't face a direct impact. Japan has been playing a long game, diversifying its energy mix and increasing its reliance on North American resources. For instance, Japan's LNG imports from North America are projected to triple by 2030.