HANOI -- Vietnam on Sunday signed a deal with firms from
Japan and Kuwait to build an oil refinery complex worth nearly
$9 billion as part of efforts to meet its growing energy
The Nghi Son refinery, which is due to start
operating by 2017 in Thanh Hoa province, about 125 miles south
of Hanoi, will turn Kuwaiti oil into gasoline and other
It will be able to process 10 million tpy of crude oil, the
State-owned PetroVietnam will own a 25.1% stake in the joint
venture while Japan's Idemitsu Kosan and Kuwait Petroleum
International will each hold 35.1%. Mitsui Chemicals of Japan
will own the remaining 4.7%.
Speaking at the signing ceremony, Vietnamese Prime Minister
Nguyen Tan Dung hailed the project as "very important" for the
communist country's economic and social development, according
to a government statement.
Vietnam has offshore oil reserves but still spends several
billion dollars each year to import petroleum products to feed
its growing economy.
A ground-breaking ceremony for the Nghi Son refinery was held in May 2008 but
the project has suffered a number of
It is still unclear when construction will start, an official
from PetroVietnam said.
The country's first refinery Dung Quat -- which cost around
$2.5 billion and has a capacity of 6.5 million tpy of crude --
opened in central Vietnam in 2009 after lengthy delays.
PetroVietnam has said that it hopes the two refineries would
satisfy 65% of the nation's oil and gas needs. It is also
preparing for a third refinery project in southern Ba Ria-Vung Tau
AFP via Dow Jones