South Korean environmental and energy solution provider City Oil Field, said Friday it signed a contract to supply decomposition oil derived from waste plastic to Vietnam’s Nam Anh Joint Stock Company.

City Oil Field CEO Jeong Yeong-hun and Nam Anh JSC CEO Van Vien Thong signed the purchase agreement at the Vietnam firm’s headquarters in Ho Chi Minh, Thursday.

Under the contract, City Oil Field will supply plastic waste derived oil including naphtha produced from its facilities in South Korea and Vietnam to Nam Anh JSC.

Under the deal, the price of oil to be shipped by City Oil Field set at $2 per liter.

The Korean firm's plant in Jeongeup, North Jeolla Province, is capable of producing up to 4,900 tons of eco-friendly naphtha a year, it said.

Naphtha, extracted from crude oil, is essential in producing petrochemical products such as plastic, polyester and nylon. Unlike conventional methods, City Oil Field's regenerated green oil technology enables the environmentally friendly production of naphtha by recycling waste plastic, employing a non-combustible treatment process.

The company said that this purchase agreement marks the first official guarantee of recycled naphtha quality using its regenerated green oil technology, paving the way for a circular supply chain of plastics.

"With the global recycled plastics market projected to surge from 7.5 trillion won in 2025 to 600 trillion won by 2050, this initiative will serve as a proactive step in addressing environmental regulations concerning waste plastic," explained City Oil Field in a statement.