Vietnam to Pick up Foreign Investors for 2nd Oil Refinery
Vietnam will select foreign investors for its second oil refinery in Nghi Son District, Thanh Hoa province in central northern Vietnam.
The state oil and gas monopoly PetroVietnam yesterday [February 14] held talks with several foreign companies from Japan, Taiwan and US, which are keen on the project.
The design and capital calculation for the oil refinery is expected to be finalized in 2008, the construction is scheduled to begin in 2009 and the operation is set to begin from 2013, PetroVietnam said.
At the meeting, PetroVietnam said it wanted to raise the processing capacity of the future Nghi Son refinery to 8.4 million metric tons of crude oil a year from the current target of 7 million tons.
The change in capacity will certainly lead to the rise in investment capital, from the previous US$3.15 billion to some US$5.25 billion, Nguyen Hoai Duong, chief of the Nghi Son oil refinery preparation committee, said.
Japan’s Idenmitsu Kosan Co. will help arrange a loan of US$3.5 billion for the project, Duong said. Idenmitsu will have a 71 per cent stake in the joint venture and PetroVietnam will keep the remaining 29 per cent.
Vietnam is now building its first oil refinery in Dung Quat district in Quang Ngai province. The US$2.5-billion refinery will have a processing capacity of 6 million tons a year when it is put into operation in early 2009. (Labour)
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