Kuwait, Japan: The First- Ever Third Country Oil Refinery

National news agency KUNA reported that a state owned company Kuwait Petroleum International (KPI) organized a joint venture with Japan's third-biggest refiner Idemitsu Kosan Co. last week to construct a $5.8 billion refining and petrochemical complex in northern Vietnam.

The agreement is known to be the first-ever Kuwaiti-Japanese project to build a refinery in a third country.

KPI, an international unit of Kuwait Petroleum Corporation (KPC), and Idemitsu Kosan Co. will evenly own a 35.1% stake in the venture with a capitalization of 200 million, while state-owned PetroVietnam will hold 25.1% and Mitsui Chemicals Inc. 4.7%.

The so-called Nghi Son Refinery Petrochemical LLC, slated to receive an investment license by June, will spend two years in studying basic equipment design, economic efficiency and finance schemes to determine whether to build the plant.

KUNA reported that if realized, construction of the refinery and petrochemical complex will start as early as 2010, targeting to be operational late 2013.