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KUWAIT CITY, Nov 28: Oil sources revealed that the Vietnam Refinery was able to pay the principal amount and the interest therein which it owed the creditors, reports Al-Qabas daily. The paid amount was $327 million on November 25, 2022.
This payment represents a positive development for the financial and operational conditions of the refinery, which has suffered many financial problems in the past years. The sources indicated to Al-Qabas that the agreement to purchase crude oil to supply the refinery with Kuwaiti oil, as well as the agreement to purchase products by the Vietnamese partner, was renewed according to the early payment mechanism for a full year.
The sources pointed out that the partners have reached a consensus on the need to move forward with the financial restructuring of the company, explaining that they are continuing their discussions with the banks financing the refinery in order to develop a detailed plan for financial restructuring and its implementation during the fiscal 2023, which is considered the most prominent solutions to improve the situation.
The refinery’s financial resources are in addition to a number of operational and commercial initiatives. The sources added these positive developments come as a result of the unremitting efforts of the Kuwait Petroleum International Company, led by the CEO of the company, and with the direct follow-up of the Minister of Oil, Dr. Badr Al-Mulla, and the CEO of the Kuwait Petroleum Corporation, Nawaf Al-Sabah. The sources said that on the operational level, the Vietnam Refinery was able to operate according to operating rates that exceeded 100%, and aspires to reach operational rates of more than 110%, after completing the periodic expected maintenance of the refinery in mid-2023.