Press release on Nghi Son refinery and petrochemical complex project’s commencement of commercial operation

NGHI SON REFINERY AND PETROCHEMICAL COMPLEX PROJECT

COMMENCES COMMERCIAL OPERATION

Nghi Son Refinery and Petrochemical Limited Liability Company (NSRP) is pleased to announce that on 14 November 2018 it commenced commercial operation of its refinery located at Tinh Gia District, Thanh Hoa Province, Vietnam (the Refinery). This was achieved by confirming the Initial Acceptance of the Refinery in accordance with NSRP’s EPC Contract.

NSRP is a joint venture company established in April 2008, with Vietnam Oil and Gas Group (PVN), Kuwait Petroleum Europe (KPE), Idemitsu Kosan Co.,Ltd. (IKC) and Mitsui Chemicals Inc. (MCI) as its sponsors, to develop, construct and operate the Refinery. With a total investment capital of over US$ 9 billion and a processing capacity of 200,000 barrels of Kuwait crude oil per day (equivalent to 10 million tons per year), the Refinery is one of Vietnam’s key national projects.

Over the past two decades, Vietnam’s economy has enjoyed one of the highest GDP growth rates in the world. To maintain this growth it is critical for the Vietnamese economy to stabilize energy sources and to attract investment projects in energy production in general and petroleum processing in particular. NSRP plays a crucial part in this, as with a stable supply of crude oil from Kuwait, the project will contribute meaningfully to Vietnam’s national energy security and contribute significantly to the socio-economic development of the North Central region of the country.

NSRP is grateful for the confidence shown in the project by both commercial banks and export credit agencies. With their support, NSRP was able to engage the JGCS Consortium, consisting of JGC Corporation, Chiyoda Corporation, GS Group, SK Group and Technip as the EPC Contractor. The Refinery, the largest manufacturing project in the history of Vietnam, is now positioned to undertake commercial operation with the production of refined products, covering more than one-third of Vietnamese domestic demand.

NSRP has supported the economy of Vietnam by sourcing goods and services valued in excess of $2billion in Vietnam so far. During the construction phase, over 30,000 people were employed at the site and NSRP expects to employ over 1,000 people, including technical and managerial personnel, during the operation phase, the vast majority of them Vietnamese nationals.

NSRP’s success in bringing the project to commercial operation required not only the contributions of NSRP, its sponsors, its lenders, its suppliers and the contractor and subcontractors, but also the significant support of the Vietnamese central government and its Ministries, Thanh Hoa’s provincial leaders, the talented people of Thanh Hoa and a variety of other stakeholders. Additionally, the success of the project, built on the solid and expansive cooperation between Vietnam, Japan and Kuwait, will contribute markedly to the future commercial, economic and cultural cooperation of the three nations.