KUNA was citing Ruan Risheng, the mayor of southern city of Zhanjiang, where the refinery will be built, following China's approval of the join venture in March. .

Last month, Kuwait said it was in talks with BP and other major energy companies over a possible role in the refinery project.

The country, the world's fourth largest crude exporter, aims to more than double its crude exports to China to reach 500,000 barrels per day (bpd).

The project will secure Kuwait a solid outlet for its oil, ahead of competitors such as Venezuela, Russia and Qatar, all of which are planning refineries in China.

Copyright Reuters, 2011