Kuwait Petroleum International said here Tuesday that it had signed a deal partner in the construction of the Nghi Son Refinery and Petrochemical Project (NSRP), the second refinery in Vietnam.

A statement by the company said that on January 15, 2013, fundamental project agreements were signed, which allows NSRP to proceed to negotiation of the financing documentation with international lenders.

The Project sponsors were Vietnam Oil and Gas Group (25.1 percent), Kuwait Petroleum Europe (35.1 percent), Idemitsu Kosan Company limited. (35.1 percent) and Mitsui Chemicals, Incorporation (4.7 percent).

With the capacity of 200,000 barrels per day (equivalent to 10 million tons a year), Nghi Son refinery would require an investment of approximately USD nine billion, and approximately USD five billion would be borrowed from international lenders.

Nghi Son refinery would import Kuwait export crude oil supplied by Kuwait Petroleum Corporation (KPC) During the initial period, all fuel products will be carried out by Vietnam Oil and Gas Group and petrochemicals will be carried out by international buyers including Idemitsu Kosan Company Limited, and Mitsui Chemicals Incorporation.

Completion of financial documentation and construction commencement are expected around July 2013. Construction is expected to complete in 2016.

NSRP Project is considered to be one the strategic projects for KPC which meet the strategic drivers for KPC long term strategy. Also, strategically important for meeting the growing demands for refined and petrochemical products for rapid industrialization and modernization of Vietnam.

Source:KUNA