By Miyoko Ishigami (with photos) HANOI, Jan 7 (KUNA) -- Kuwait Petroleum Corporation (KPC) Chief Executive Officer Farouk Al-Zanki and Vietnamese Deputy Prime Minister Hoang Trung Ha discussed solutions to the foreign currency guarantees required for the joint refining and petrochemical project, Al-Zanki said. "Once foreign exchanges and other financial issues come clear, we will be in a position to submit it to the KPC board for final decision," Al-Zanki told Kuwait News Agency (KUNA) on Saturday, noting that both Kuwait and Vietnam are committed to this project." Other issues were also discussed to drive the Project forward, according to KPC's top official.

The Nghi Son Refinery Petrochemical Complex, the largest and most important refining project in energy-hungry Vietnam, will be located in the northern province of Thanh Hoa, some 180 kilometers south of Hanoi.

KPC will supply 100 percent crude oil for the vital joint venture with Vietnam and Japan. The state-of-the-art refinery will have an annual oil processing capacity of 10 million tons, or 200,000 barrels per day (bpd), with a view to going online in four years after commencement of construction. The facility will also include a petrochemical complex, energy facilities, a pipeline and storage systems, along with an informatics system. It will primarily churn out products such as LPG, gasoline, diesel and jet fuel for the domestic market, together with paraxylene, benzene and polypropylene for neighbouring countries.

KPC's international unit Kuwait Petroleum International (KPI) established the joint venture in April 2008 with PetroVietnam, Japan's Idemitsu Kosan Co. and Mitsui Chemicals Inc. KPI and Idemitsu each own a 35.1 percent stake in the joint project, with PetroVietnam and Mitsui Chemicals Inc. putting up 25.1 percent and 4.7 percent, respectively.

While in Hanoi, Al-Zanki also held talks with PetroVietnam President and CEO Do Van Hau, in which they reaffirmed their concerted efforts to resolve outstanding issues of the planned refining and petrochemical joint venture and bring it to a successful conclusion.

Do also pledged his full support to secure Vietnamese government's guarantee for foreign exchanges required for the Project.

The project is in line with KPC's strategy to invest in the growing energy markets and maximize the value-added benefits of the Kuwaiti crude. Although Vietnam is Southeast Asia's third-largest producer of crude oil, its limited refining capacity means that it still relies on imported oil products.

As Vietnam's largest refinery, it is expected to contribute more than 30 percent of the nation's demand for petroleum products.

According to the International Finance Corporation (IFC), a member of US-based World Bank Group, the project will benefit from the continuous growth projected in the demand for refined products in Vietnam, which has averaged some six percent annually over the last decade and is expected to continue in the longer run. The project is also expected to provide over 33,000 jobs at peak during the construction period.

Friday's meetings were also attended by KPC International Marketing Managing Director Nasser Al-Mudhaf, KPI President Hussain Esmaiel, KPI Deputy Managing Director Mohammed Rashed Jasem, KPI Business Development General Manager Ghanim Al-Otaibi, Deputy General Director of Nghi Son refinery Naser Ben Butain, KPI Hanoi Chief Representative Turki Al-Ajmi and other officials. Al-Zanki left Hanoi on Saturday after concluding his successful Asian tour that has also taken him to Beijing.