Kuwaiti Oil Minister Sheikh Ahmad Al-Abdullah Al-Sabah and state-run PetroVietnam Chairman Dinh La Thang on Monday agreed to reinforce their cooperation toward success of the planned refining and petrochemical joint venture between Kuwait, Vietnam and Japan.
Thang sought support from Shiekh Ahmad that Kuwait will create favorable conditions for PetroVietnam in oil and gas industry, including upstream projects. He also voiced expectation for increased cooperation between the state-run oil firms from both countries in Vietnam's real estate and power plant industries. Sheikh Ahmad told Thang that upstream projects should be in line with the constitution, and proposed to expand mutual exchanges of delegations for a wider range of cooperation between the two countries. He also pledged stable supply of long-term Kuwaiti crude to the joint venture.
Sheikh Ahmad arrived in the Vietnamese capital on Sunday for talks with Vietnamese leaders to enhance bilateral relationship on various energy related fronts.
Located about 180 kilometers south of the capital Hanoi, the Nghi Son Petrochemical Refinery Complex, the largest and most important refining project in energy-hungry Vietnam, has a total investment capital of USD 6 billion for the refinery. The complex is to be operational in 2013 with a daily refining capacity of 200,000 barrels, and the capacity will be doubled to 400,000 barrels per day (bpd) in the future if the local demand is great.
The joint venture was formed in April 2008. KPI and Idemitsu evenly own a 35.1 percent stake in the joint venture, with PetroVietnam and Mitsui putting up 25.1 percent and 4.7 percent. KPI is an international unit of Kuwait Petroleum Corporation (KPC).
Mondays talks also touched on an ongoing offshore project in Vietnam, in which KPCs subsidiary Kuwait Foreign Petroleum Exploitation Co. (KUFPEC) and PetroVietnam are involved. The minister also visited Nghi Son Refinery Petrochemical LLC, the joint venture company, at its Hanoi office, to meet employees. Global Arab Network
Miyoko Ishigami, HANOI, (KUNA)