Saturday, October 20, 2007

Vietnam's PetroVietnam allocates $6 billion for second refinery

HA NOI — The Viet Nam Oil and Gas Group (PetroVietnam) has allocated US$6 billion to the construction of a second refinery and petrochemical complex in Tinh Gia District of Thanh Hoa Province.

"PetroVietnam will contribute between US$1.8 - 2 billion or 30 per cent of the combined capital needed to build the complex," Dinh La Thang, Chairman of PetroVietnam’s Board unveiled.

Major domestic investors include the Viet Nam Post and Telecommunications Group, the Bank for Foreign Trade of Viet Nam, the Viet Nam Bank for Agriculture and Rural Development, the Viet Nam National Petroleum Corporation and other shareholders, with a contribution ratio of eight, ten, ten, ten and 32 percent respectively.

According to Thang, "PetroVietnam is currently negotiating with Idenmitsu of Japan to form a joint venture. The co-operation agreement will ensure the group has a hand in both the finance and technology industries,"

"To further satisfy the domestic markets’ needs for crude oil for the next 30 -years and into the long-term, a deal was signed with Netherlands’ Trafigura, as well as Swiss-based oil trader Glencore," Thang added.

Construction of Vietnams’ second refinery after Dung Quat is due to begin next year. "The project is eligible for the Governments’ special incentive policies and expected to be completed by 2013," said Cao Hoai Duong, Manager of Nghi Son preparing refinery and petrochemical complex department in Ha Noi. PetroVietnam continues to seek investors for a third refinery in Long Son District of Ba Ria-Vung Tau. — VNS