Japanese oil refiner Idemitsu Kosan Co., Ltd. and Kuwait’s state-run Kuwait Petroleum International (KPI) have applied to establish a joint venture to sell petroleum products in Vietnam, Idemitsu said in a statement its website on Monday.
“Through the establishment of a petroleum product distribution company, Idemitsu and KPI will achieve a stable supply of products to the growing Vietnamese market, where demand for petroleum products is expected to follow a steady upward trend,” says the statement.
The joint venture, Idemitsu Q8 Petroleum Limited Liability Company, aims to launch fuel service stations in Vietnam starting early next year and begin wholesale oil operations or direct sales to businesses in the future, the Tuoi Tre (Youth) newspaper cited an Idemitsu spokesman as saying.
If things go smoothly, this will be the first wholly foreign-owned company to join Vietnam’s fuel retail market.
The two companies now hold 35.1% interests each in Nghi Son Refinery and Petrochemical complex, the second oil refinery in the Southeast Asian country. The refinery, with a capacity of 200,000 barrels per day, is scheduled to start operation in mid-2017.
The venture will mainly receive fuel supplies from the Nghi Son facility once it starts operations, the spokesman added.
During a working trip to Kuwait last week, state-run energy firm PetroVietnam
discussed potential business with Kuwait Petroleum Corporation, the parent firm of KPI.
PetroVietnam encouraged the Kuwaiti state-run petroleum company to acquire a strategic stake in the former’ oil distribution arm PV Oil, which is set to go public by the end of this year.
JX Nippon Oil & Energy last week agreed to buy an 8% stake in Vietnam National Petroleum Group (Petrolimex
), the largest oil distributor in the country, for some $183 million.