State-run Kuwait Petroleum International (KPI) and Japan's leading refiner Idemitsu Kosan Co. have applied for registration of a joint venture company in Vietnam to sell petroleum products in the Southeast Asian country, Idemitsu announced in a statement.

"KPI and Idemitsu intend to promote retail and wholesale operations, mainly through the construction and management of service stations across Vietnam," the Tokyo-based firm said in a statement carried by Kuwait News Agency, KUNA. The joint venture, called Idemitsu Q8 Petroleum LLC, will be the first wholly foreign-owned firm in the oil product distribution and retail sectors in Vietnam.

"Through the establishment of a petroleum product distribution company, KPI and Idemitsu 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, thereby contributing to the social and economic development of Vietnam," said Idemitsu.

The two companies are major investors in the Nghi Son Refinery and Petrochemical LLC, which is constructing Vietnam's second oil refinery to be operational in 2017, according to Idemitsu. The 200,000-barrel-per-day Nghi Son Refinery and Petrochemical Project is 35.1 percent evenly owned by KPI and Idemitsu., 25.1 percent by state-owned PetroVietnam and 4.7 percent by Japan's Mitsui Chemicals Inc.

KPI's parent company Kuwait Petroleum Corporation (KPC) will supply all the feedstock for the facility, which will also include petrochemical units, energy facilities, a pipeline and storage systems, along with an information management system.

Source :WAM