Kuwait: Losses at Vietnam Refinery May Reach One Billion Dollars

The Kuwaiti Oil Minister announced that the Vietnam refinery and petrochemical complex known as "Nghi Son," in which Kuwait participates, is expected to record losses of up to one billion dollars in 2023, according to a document reviewed by Reuters. Both Kuwait Petroleum International Company and Japan's Idemitsu Kosan hold 35.1% shares in the "Nghi Son" refinery, while state-owned PetroVietnam owns 25.1%, and Japan's Mitsui Chemicals has 4.7%. Minister Saad Al-Barak attributed the expected losses to fluctuations in oil product prices, the two-month closure of the refinery for maintenance, and rising interest rates on loans, which are "factors outside the control of the refinery and Kuwait Petroleum International." According to the document, which is a response to a parliamentary question, the partners have discussed restructuring financial debts "due to the recent stalled negotiations with financiers and because of the lack of agreement from the Vietnamese partner with the foreign partners." He noted that the Vietnamese partner has not accepted several terms of the non-binding conditions for the company's financial restructuring aimed at reaching a consensus solution. The Kuwaiti minister confirmed that "it is currently difficult to set a timeline for achieving profitability and avoiding losses while discussions between the partners continue."