Letter of Award Issued for Nghi Son Refinery and Petrochemical Complex

abarrelfullabarrelfull wrote on 15 Jan 2013 12:21
Tags: asia engineering idemitsu kpi petrovietnam refinery top vietnam

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Idemitsu Kosan Co., Ltd. (Head office: Chiyoda-ku, Tokyo; President: Kazuhisa Nakano; hereinafter “Idemitsu”) established Nghi Son Refinery and Petrochemical LLC (hereinafter “NSRP”) in 2008, together with Mitsui Chemicals, Inc. (Head Office: Minato-ku, Tokyo; President & CEO: Toshikazu Tanaka; hereinafter “Mitsui”), Kuwait Petroleum International (hereinafter “KPI”), and PetroVietnam (hereinafter “PVN”) in order to develop a workable concrete business scheme for the possible refinery business in Vietnam as well as conducting Front-End Engineering Design work (FEED) for an international bidding.

We decided to select a construction consortium for the Nghi Son Refinery and Petrochemical Complex and issued “Letter of Award (LOA)” through NSRP to the consortium for that Engineering, Procurement and Construction (EPC) as outlined below.
NSRP will launch syndication procedures of a co-financing arrangement with international commercial banks, Export Credit Agencies (ECAs) and Multi-Lateral Agency (MLA) shortly.

The goal of this challenge is to develop a world-class refinery and petrochemical complex utilizing technical and operational expertise that Idemitsu has developed in its petroleum and petrochemicals business in Japan.
Idemitsu believes that the refinery will be able to contribute to supply petroleum products in the rapidly growing domestic market of Vietnam. Idemitsu also has intent to have a strategic advantage in growing markets of Southeast Asia strengthening business partnerships with oil-producing countries.

  1. Date of issue of LOA
    1. January 15, 2013
  2. Total investment amount
    1. US $9 billion (including working capital and financing costs (estimated)) Plans call for raising funds on a project finance basis (co-financing arrangement with international commercial banks, Export Credit Agencies (ECAs) and Multi-Lateral Agency (MLA), with a target amount of US $5 billion.
  3. Members of construction consortium
    1. JGC Corporation, Chiyoda Corporation, Technip Group (France, Malaysia), SK Engineering & Construction (South Korea), and GS Engineering & Construction (South Korea)
  4. Future schedule (planned)
    1. January 2013 Syndication launch, Signing of the EPC contract
    2. Mid 2013 Finance close, EPC commencement
    3. End 2016 Mechanical Completion
    4. Mid 2017 Commencement of the commercial operation

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