The state-owned Vietnam National Petroleum Group (Petrolimex) has signed a memorandum of understanding with Japan's top oil refinery group JX Nippon Oil & Energy on the construction of a refinery in south-central Vietnam.
Last Friday, the two companies signed an agreement in Hanoi pledging to hold exclusive talks on the construction of the Nam Van Phong Petrochemical Refinery Complex in Khanh Hoa Province.
The refinery will be capable of handling roughly 200,000 barrels daily, according to Nikkei.
The JX Nippon Oil & Energy Group expects to complete its feasibility study within six months.
The plant is slated to go online in mid-2020 at the earliest.
The Vietnamese government approved the Nam Van Phong project in 2008, when it estimated it would cost between US$4.4 and 4.8 billion.
Construction was initially scheduled to begin in 2011, and to finish at the end of 2013. However, the project missed its deadline and the cost projections have shot up to $8 billion, Vietnam News Agency reported.