State-run Vietnam National Petroleum Corp. (Petrolimex) and JX Nippon Oil & Energy Corp., a subsidiary of JX Holdings Inc., have signed a memorandum of understanding (MOU) to jointly develop a 10 million-tonnes/year refining and petrochemical complex to be located in Van Phong Economic Zone in Khanh Hoa Province, Vietnam.
The MOU, which sets out principles for strategic cooperation between the two companies, was signed in Hanoi, Vietnam, on Dec. 19, Petrolimex and JX Nippon said in separate statements on Dec. 22.
As part of the agreement, the companies will obtain a license to set up a joint venture intended to revise a project feasibility study for the refinery, according to the MOU.
The agreement also calls for the companies to gain approval for JX Nippon to become a strategic shareholder of Petrolimex through a share issuance package.
Legal work for the share issuance and joint-venture license is scheduled to be completed by mid-2015, Petrolimex said.
A timeframe for the development of the integrated petrochemical complex was not disclosed.
