Idemitsu Kosan Co., Ltd. : Letter of Award Issued for Nghi Son Refinery and Petrochemical Complex
January 15, 2013 at 04:46 am EST
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January,15,2013
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
January 15, 2013
2. Total investment amount
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
JGC Corporation, Chiyoda Corporation, Technip Group (France, Malaysia), SK Engineering & Construction (South Korea), and GS Engineering & Construction (South Korea)
4. Future schedule (planned)
January 2013
Syndication launch, Signing of the EPC contract
Mid 2013
Finance close, EPC commencement
End 2016
Mechanical Completion
Mid 2017
Commencement of the commercial operation
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Idemitsu Kosan Co., Ltd. is specialized in the production and refining of petroleum products. Net sales break down by category as follows:
- refining of petroleum products (78.8%): fuels, lubricants, kerosene, etc. At the end of March 2019, the group operated 6 refineries in Japan;
- manufacturing of petrochemical products (12.5%): activity carried out in 2 production sites located in Japan;
- exploration and production of oil, coal, uranium and geothermal resources (7%);
- other (1.7%).
Net sales are distributed geographically as follows: Japan (69.8%), Asia-Pacific (19.2%), North America (7.2%), Europe (2.4%) and others (1.4%).
IDEMITSU KOSAN CO., LTD. 
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