Kuwait Japan joint oil refinery project in Vietnam

Tuesday, Nov 11, 2008

It is reported that the first ever Kuwaiti Japanese joint refinery project in Vietnam is proceeding as planned. Japan’s third biggest refiner Idemitsu Kosan Co. said in a statement that “We are currently carrying out basic equipment design and preparing bids for the construction”. It also reaffirmed that the JV will begin construction of a USD six billion refining and petrochemical complex within two years if the participating companies decide to go ahead with the plan after examining its economic efficiency and fund procurement.

If realized, the Nghi Son Petrochemical Refinery Complex, the largest and most important refining project in energy hungry Vietnam, will be operational late 2013. The complex, to be located in 180 kilometers south of Hanoi, will become Vietnam’s second oil refinery. The JV was established in April 2008 and obtained the investment license in May 2008. Kuwait Petroleum International, an international unit of Kuwait Petroleum Corporation, and Idemitsu evenly own a 35.1% stake in the joint project with a capitalization of USD 200 million, with state owned PetroVietnam and Japan’s Mitsui Chemicals Inc. putting up 25.1% and 4.7%.

Source: SteelGuru