Idemitsu, Kuwait Approves $9 Billion Vietnam Refinery Project

Idemitsu Kosan Co., a Japanese refiner, and its partners approved a $9 billion oil refinery project in Vietnam to meet rising demand in the country.

The companies expect to start construction in the second quarter of this year and commercial production in 2017, Tokyo- based Idemitsu said in a statement. They’ve awarded an engineering, procurement and construction contract to a consortium formed by Chiyoda Corp., JGC Corp., Technip SA, GS Engineering & Construction Corp. and SK Engineering & Construction Co., according to the statement.

Idemitsu and its partners delayed deciding whether to build the Nghi Son plant, south of Hanoi, at least three times as they resolved issues including how to finance the project. The Nghi Son plant with capacity of 200,000 barrels a day will be Vietnam’s second after the Dung Quat refinery started commercial operations in 2009.

Idemitsu and Kuwait Petroleum International Ltd. each have a 35.1 percent stake in the Nghi Son project, while Vietnam Oil & Gas Group holds 25.1 percent. Mitsui Chemicals Inc. (4183) has a 4.7 percent interest.

To contact the reporters on this story: Tsuyoshi Inajima in Tokyo at; Yuji Okada in Tokyo at

To contact the editors responsible for this story: Jason Rogers at; Peter Langan at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.