TOKYO -- JX Nippon Oil & Energy will take a roughly 10% stake in Vietnam National Petroleum Group, kicking off a sales partnership and mulling participation in a refinery project to serve the Southeast Asian nation's growing oil market.
The JX Holdings unit will pay around 20 billion yen ($177 million) for its share in the company, also known as Petrolimex. The duo have been in exclusive negotiations on a business tie-up since December 2014.
Petrolimex sells more than half of Vietnam's oil products. While motorcycles now dominate in the country, automobile demand is seen spreading rapidly. JX will supply its partner with expertise in business matters, including gas station management and payment systems.
JX will decide in fiscal 2016 whether to join a Petrolimex oil refinery project in southern Vietnam's Van Phong Economic Zone. The facility is slated to have a processing capacity of around 200,000 barrels of oil a day, making gasoline and diesel fuel for the domestic market. A 150,000-barrel refinery is active in the country but meets only 30-40% of demand there.
Fellow Japanese energy company Idemitsu Kosan has invested $9 billion in a joint venture building a refinery in the Nghi Son Economic Zone. Operations are set to begin in the summer of 2017. But the need for further facilities is seen growing alongside Vietnam's economy. JX looks to team up with Petrolimex as well as Middle Eastern oil interests on future projects in the country, turning the market into a key revenue source as Japan's oil demand shrinks.
The JX Holdings unit will pay around 20 billion yen ($177 million) for its share in the company, also known as Petrolimex. The duo have been in exclusive negotiations on a business tie-up since December 2014.
Petrolimex sells more than half of Vietnam's oil products. While motorcycles now dominate in the country, automobile demand is seen spreading rapidly. JX will supply its partner with expertise in business matters, including gas station management and payment systems.
JX will decide in fiscal 2016 whether to join a Petrolimex oil refinery project in southern Vietnam's Van Phong Economic Zone. The facility is slated to have a processing capacity of around 200,000 barrels of oil a day, making gasoline and diesel fuel for the domestic market. A 150,000-barrel refinery is active in the country but meets only 30-40% of demand there.
Fellow Japanese energy company Idemitsu Kosan has invested $9 billion in a joint venture building a refinery in the Nghi Son Economic Zone. Operations are set to begin in the summer of 2017. But the need for further facilities is seen growing alongside Vietnam's economy. JX looks to team up with Petrolimex as well as Middle Eastern oil interests on future projects in the country, turning the market into a key revenue source as Japan's oil demand shrinks.
(Nikkei)
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