Vung Ro Oil and Gas Co., Ltd, a Joint venture between Technostar Management Ltd. of the U.K. and Russia's Telloil, November 27 received the investment license to build an oil refinery in central Phu Yen province, about 300 kilometers north east of Ho Chi Minh City, a provincial official said.
The two investors have decided to invest US$1.7 billion in the Vung Ro oil refinery, which will occupy occupy 200 hectares of land and 210 hectares of water surface in local Hoa Tam and Hoa Xuan Nam communes of Dong Hoa district.
In the first phase, the plant, due for completion in 2011, will produce liquefied petroleum gas (LPG), benzene, gasoline, diesel, fuel for reactive power and sulphur, at a capacity of 4 million tons annually.
The project’s annual output will be raised to 8 million tons at the end of the second phase.
Once fully operational from 2011, the plant is expected to attain yearly revenues of US$2.23 billion, to contribute US$100 million to the provincial budget and create around 1,000 jobs.
The plant, the first wholly foreign-invested refinery in Vietnam, will be near Vung Ro port, and will use local and foreign crude oil as material input, the firms said.
The plant, which will import crude oil from the Middle East as feedstock, is the fourth oil refinery project in Vietnam.
Vietnam now has no oil refineries. The first Dung Quat is still under construction in central Quang Ngai province and is due for operation in February 2009. The country is preparing for the second Nghi Son in central Thanh Hoa province and the third Long Son in southern Ba Ria - Vung Tau province. (Liberated Saigon, VNA)
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