JGC Group Wins Vietnam Refinery Contract, Nikkei Says

A JGC Corp.-led group that includes Chiyoda Corp. and Technip SA won exclusive negotiating rights for a contract to build a refinery in Vietnam, the Nikkei newspaper reported without saying where it got the information.

The project is expected to cost more than $8 billion, including the construction of a harbor and other facilities, according to the report. The refinery will cost more than $5 billion, the Nikkei said.

Masato Kanazawa, a spokesman at Yokohama, Japan-based JGC confirmed a consortium including JGC submitted a bid for the project. He declined to comment on details or confirm whether the group won the right to negotiate. Yokohama-based Chiyoda declined to comment when contacted by Bloomberg.

Idemitsu Kosan Co., Japan’s second-biggest refiner, and Kuwait Petroleum Corp. in April 2008 joined PetroVietnam to build the 200,000 barrel-a-day Nghi Son oil plant. Idemitsu and Kuwait Petroleum each have a 35.1 percent stake in the construction project, while PetroVietnam holds 25.1 percent and Mitsui Chemicals Inc. has 4.7 percent.

Idemitsu spokesman Ryuichi Sato said nothing has been decided. Idemitsu plans to make its final investment decision on the project by March 2011, he said. No official decision has been made on the project, said Jun Nakaoka, a spokesman at Mitsui Chemicals. A representative from PetroVietnam also declined to comment on the report.

To contact the reporter on this story: Tsuyoshi Inajima in Tokyo at tinajima@bloomberg.net.

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.

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