The Vietnamese Government has given a guarantee to important deals that will enable the planned construction and operation of Nghi Son Refinery and Petrochemical Complex (NSRP) in the central province of Thanh Hoa.

Five documents supporting the NSRP project were signed in Hanoi on January 15 in the presence of Deputy Prime Minister Hoang Trung Hai, Kuwaiti Ambassador to Vietnam Hamad Saled Aljutaili, and Charge de Affairs at the Japanese Embassy in Vietnam Hideo Suzuki.

They include a government guarantee undertaking (GGU) between the Vietnamese Government (represented by the Ministry of Industry and Trade) and foreign investors and the NSRP; a fuel product offtake agreement (FPOA) between the Vietnam National Oil and Gas Group (PetroVietnam) and the NSRP; a currency board arrangement (CBA) between the NSRP and the Bank for Foreign Trade of Vietnam (Vietcombank); a service agreement of fronting insurer (SA) between the NSRP and the PetroVietnam Insurance Corporation (PVI); and the NSRP’s letter of award for EPC contract (LOA) to the group of EPC contractors.

Accordingly, the Kuwait Petroleum International Company (KPI) will be a long-term crude oil provider for the NSRP.

The complex’s refined oil products will be secured by PetroVietnam and its petrochemical products to be bought by Japan ’s Idemitsu Company.

Deputy PM Hai said the NSRP will help boost Vietnam ’s economic development and ensure national energy security as its products are expected to meet 40 percent of local demand.

He affirmed that the Vietnamese Government will continue creating favourable conditions so that the project will be deployed as scheduled and the complex can become operational in the third quarter of 2016.

NSRP Chairman Hussain Esmaiel stated that the complex is an important long-term project not only for Vietnam but also for Kuwait and Japan .

The project has a total investment of 9 billion USD, of which 4 billion USD is contributed by the NSRP’s investors and the remaining comes from commercial banks and financial institutions.

Lauding valuable support from the Vietnamese Government, PVN and the People’s Committee of central Thanh Hoa province, Hussain pledged to closely coordinate with the concerned parties in addressing all difficulties so that construction work of the complex can start in July, 2013.

As a key national work, the NSRP covers an area of 400 ha in the Nghi Son Economic Zone in Tinh Gia district, Thanh Hoa province.

Its investors include PVN, with 25.1 percent of stake; KPI, 35.1 percent; Japan’s Idemitsu Kosan Company (IKC), 35.1 percent; and the Japan’s Mitsui Chemical Inc. (MCI), 4.7 percent./.VNA