Kuwait Petroleum Corporation (KPC) prepares to ship two million barrels of crude to the Vietnam Refinery in August 1, 2017 in order to supply it with enough supplies for operations, Minister of Oil, Minister of Electricity and Water and Chairman of the Board of KPC Engineer Essam Abdulmohsin Al-Marzouq said, adding that KPC’s International Marketing Department will send other shipments according to the agreements in this regard.
The Vietnam Refinery was established in Nghi Son, which is located around 200 kilometers south of Hanoi, Al-Marzouq said, adding that it is considered one of Kuwait Petroleum International’s (KPI) vital offshoot projects. The refinery was designed to process Kuwaiti crude by 100%, with a capacity of up to 200,000 barrels a day, he said, adding that it achieves integration between refinement and petrochemicals to attain the targeted returns. Furthermore, it secures limited risks by entering with global partners, and marketing fuel products in the Vietnamese market which enjoys high demand through global prices, Al-Marzouq noted, adding that the project started in July 2013 and was completed in 43 months.
“A joint company was established as the owner of the refinery and petrochemical complex project in Vietnam, where KPI owns a 35.1% share, Japan’s Idemitsu Kosan owns a 35.1% share, PetroVietnam owns a 25.1% share and Japan’s Mitsui owns a 4.7% share,” Al-Marzouq said, adding that the project is expected to make generous returns according to KPC’s foreign investment requirements, and provide a safe long-term outlet for the Kuwaiti crude.
The project, which is affiliated with KPI, is important because it comes as part of efforts to enhance Kuwait’s oil relations with Vietnam and other international partners, Al-Marzouq said, while also applauding KPI’s ability to grow and improve, as well as the capabilities of the Kuwaiti young people whose aspirations help realize the hopes and ambitions of the oil sector.
“The Vietnam Refinery project embodies the vision of KPC and its subsidiaries to reach a leading global position in the downstream industry and marketing, achieve excellence in performance indicators, and provide added value to Kuwaiti crude,” Al-Marzouq concluded.