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Fri 7 Jun 2013 11:08 AM

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Kuwait-backed refinery in Vietnam to go ahead

Japanese co-investor says $9bn project involving Kuwait's KPI will proceed after final agreement

Kuwait-backed refinery in Vietnam to go ahead
(Photo for illustrative purposes only)

Japan's Idemitsu Kosan Co said it would proceed with a $9bn oil refinery project in Vietnam as it had reached a final investment decision with co-investors Mitsui Chemicals Inc, Kuwait Petroleum International and PetroVietnam.

Idemitsu, Japan's third-largest refiner, said construction of the 200,000 barrels per day (bpd) Nghi Son refinery and chemical complex would start next month.

Most of the scheme would be paid for via project financing agreements of up to $5bn, involving $2.3bn in loans from the Japan Bank for International Cooperation (JBIC) and the Export-Import Bank of Korea (KEXIM) and loans totalling $2.7bn from commercial banks, Idemitsu said

The remaining $4bn would be directly financed by Idemitsu and its co-investors. Of this amount, Idemitsu would invest $1.4bn, the company said in a statement.

Idemitsu had said in January a final investment decision on the project, with commercial operations of the complex planned in the second quarter of 2017, was expected by June.

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