PetroVietnam, Military Bank Sign US$20M Deal for Vietnam First Oil Refinery

The Military Bank (MB) has recently reached an agreement with the state-owned oil monopoly PetroVietnam group to provide a loan worth US$20 million to the polypropylen workshop of Vietnam’s first oil refinery Dung Quat, state media reported.

 

The contract started the MB’s commitment to provide loans totaling US$200 million for PetroVietnam and its affiliates in the 2009-2010 period, PetroVietnam chairman Dinh La Thang said.

 

The workshop is aimed to diversify output products of the oil refinery.

 

PetroVietnam needs VND185 trillion (US$10.88 billion) carry out projects including oil and gas exploration and production both locally and internationally, power plants, energy schemes, and real estate.

 

Built at a total cost of US$3.1 billion, the refinery has already received a preferential loan of US$1 billion from the Vietnam Development Bank (VDB), a soft loan worth US$250 million from the Bank for Foreign Trade of Vietnam (Vietcombank), and US$200 million from the Vietnam Bank for Industry and Trade (Vietinbank).

 

Operational on February 22 in central Quang Ngai province after 44 months of construction, the oil refinery is expected to refine 3.5 million tons of crude oil into 2.6 million tons of products this year.

 

Once running at full capacity as from late August, the plant is estimated to offer to market 150,000 tons of gasoline; 240,000 tons of diesel; 23,000 tons of liquefied petroleum gas (LPG); over 8,000 tons of propylene; 30,000 tons of Jet-A1 fuel; and 25,000 tons of fuel oil (FO) monthly. (Investment, Saigon Liberation)