A memorandum of agreement was signed Wednesday by Merapoh Resources Corporation Sdn Bhd and Kedah State Government, with the aim of developing a US$10 billion refinery project in Yan, Kedah.

It was put forth by the Merapoh Resources Corporation executive chairman, Md Nazri Ramli that the project consists of the development of a two-train refinery in Sungai Limau Hydrocarbon Hub (SULIH), with a total capacity of 350,000 barrels per day.

It is being estimated that within the next five years the construction and the development of the refinery would be completed, said Md Nazri Ramli, at the signing ceremony for the implementation of the project here Wednesday.

He further specified that the reclamation of offshore land totaling 340 hectares, and the use of 40 hectares on-shore land, would be involved in the project.

While explaining more about the project, Md Nazri said that crude petroleum oil from the Middle East would be imported by Merapoh Resources Corporation, apart from processing the crude into refined products and exporting them to China and other Asian nations.

A tie-up with China's state oil company China National Petroleum Company (CNPC) has been worked out, to market Merapoh's refinery products for a period of 20 years.

"Korea's SK Group of Companies, which owns one of the world's largest oil refineries, through its subsidiary SK Engineering & Construction has been appointed to do the engineering, procurement, construction and commissioning (EPCC) of the project," said Md Nazri.

Nearly 300,000 jobs would be created by the way of this project.