(VNF) - Kuwait Petroleum International Ltd and Japan's Idemitsu Kosan Co. Ltd have applied to form the 50:50 Idemitsu Q8 Petroleum Limited Liability Company to distribute petroleum products in Vietnam.

This will be the first wholly foreign-owned company in the nation’s oil product distribution and retail sector, which is viewed as "sensitive" for national energy security. Wholesale and retail activities currently are all implemented by domestic oil companies.

Once operational, from 2017 as set out in the regulation/agreement, it should provide a stable supply of products to the growing Vietnamese market, where demand for petroleum products is expected to follow a steady upward trend.

They intend to promote retail and wholesale operations, mainly through the construction and management of service stations across Vietnam.

The Nghi Son oil refinery complex project has a total investment of over USD9 billion, consuming around 10 million barrels of crude oil per year.

Earlier, the Vietnam Petrolimex Group (Petrolimex) inked a Memorandum of Understanding with Japan’s JX Nippon Oil and Energy. In which, the Japanese side should invest enough capital to become a strategic partner of Petrolimex.

The development the Nam Van Phong oil refinery complex in Khanh Hoa province is also on the table./.

VNF