Investment in Dung Quat Oil Refinery Soars to US$2.5Bln

Investment in Dung Quat Oil Refinery Soars to US$2.5Bln

Investment for the long-delayed Dung Quat oil refinery, the largest oil refining project in Vietnam so far, has soared to US$2.5 billion, over double from the initial estimation of just US$1.2 billion.

The Vietnam's State oil and gas monopoly PetroVietnam has successfully negotiated equipment and construction prices with involved investors represented by the France's Technip, according to Mr. Tran Ngoc Canh, PetroVietnam general director.

If the price adjustment gets the nod from the government, the official signing of the Engineering and Procurements Contract will take place tomorrow [May 17], Canh said.

However, the signed deal becomes effective only when the National Assembly, Vietnam's legislature, passes it, he added.

Canh said the sharp rise in investment resulted from the building of several added construction works, the global price rise in equipment and construction materials and the USD slide over the EUR.

The increase in investment is also attributed to the withdrawal of the Russian Zarubezhneft from a joint venture with PetroVietnam.

The central Quang Ngai province-based Dung Quat oil refinery project, approved by the National Assembly in 1997, will process 6.5 million tons of crude oil per year.

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