Cosmo Oil and Baker Hughes Sign Strategic MOU for Refinery Digital Transformation and Equipment Reliability Enhancement

Cosmo Oil Co., Ltd. (President: Katsushi Nishi) and Baker Hughes Energy Japan Co., Ltd. (Representative: Takao Horibe), the Japanese subsidiary of the global energy technology company Baker Hughes, signed a strategic Memorandum of Understanding (MOU) on April 17 to jointly explore the enhancement of equipment performance, reliability, and digital capabilities at all of Cosmo Oil's refineries (Chiba, Yokkaichi, and Sakai).

Refineries are required to implement more advanced maintenance strategies and operational decisions than ever before to ensure the safe and stable operation of aging equipment. To address these challenges, Cosmo Oil is promoting high efficiency through the digital transformation of its refineries.

Under this MOU, the companies will leverage Baker Hughes’ extensive technology portfolio, including AI-driven digital solutions, predictive maintenance, asset strategy optimization, and sustainable technologies. This collaboration aims to advance Cosmo Oil's equipment reliability, operational sophistication, efficiency optimization, and long-term human resource development strategy.

The two companies have already been working together on reliability improvement initiatives. As part of these efforts, Cosmo Oil expects certain cost reduction effects through the introduction of Reliability-Centered Maintenance (RCM) using Baker Hughes' Cordant™ Asset Strategy. This initiative optimized maintenance strategies for critical equipment and established a new data-driven approach to reliability improvement.

This MOU reaffirms the common commitment of both companies to drive innovation and digital transformation across the entire energy value chain. By applying Baker Hughes' global technologies for digitalization, reliability enhancement, and the creation of low-carbon, sustainable energy systems to Cosmo Oil's refinery operations, the companies aim to create further value.

[Main Scope of Collaboration]

Digital Sophistication and Predictive Maintenance Solutions
• Anomaly detection using AI/ML (Machine Learning) and physics-based failure mode analysis.
• Enhancement of predictive maintenance workflows to improve equipment reliability and reduce unplanned shutdowns.
• Application of model-based scenario analysis and maintenance optimization approaches proven in existing RCM projects.

Asset Strategy and Consulting
• Joint evaluation and optimization of asset strategies across all Cosmo Oil refineries.
• Support for the transition from time-based maintenance to risk-based maintenance by applying systematic failure mode analysis used in Cordant™ Asset Strategy.
• Sharing knowledge to maximize the value of existing systems.

Training and Capacity Development
• Human resource development programs based on Baker Hughes' global refinery and rotating machinery expertise.
• Workshops and annual technical seminars to enhance operational excellence.

User Feedback and Joint Innovation
• Strengthening solutions through the provision of field insights and user experience by Cosmo Oil.

[About Cosmo Energy Group]
The Cosmo Energy Group is vertically integrated across the oil supply chain—from development and refining to sales—and handles a wide range of essential energy sources, including petrochemicals and wind power. Cosmo Oil, the refining arm, operates three refineries in Chiba, Yokkaichi, and Sakai, contributing to society by ensuring a safe and stable energy supply while striving for sustainable development.