9:40:36 AM | 17/10/2007
State-owned oil monopoly of PetroVietnam is preparing to mobilize investment capital from domestic investors and banks to carry out Nghi Son oil refinery project in central Vietnam, the second of its kind in the country, an official said.
PetroVietnam CEO Dinh La Thang said that the project is valued at around US$6 billion, including between US$1.8 billion and US$2 billion chartered capital.
PetroVietnam will contribute 30 per cent of the registered capital while its strategic shareholders Vietnam Post and Telecommunications Group (VNPT) will share 8 per cent, the Vietnam Bank for Foreign Trade (Vietcombank) 10 per cent, the Bank for Agriculture and Rural Development of Vietnam (Agribank) 10 per cent and Vietnam National Petroleum Corp. (Petrolimex) 10 per cent, he said.
Other normal shareholders will contribute the rest of 32 per cent, he added.
In a bid to ensure sufficient crude oil for the oil refinery, PetroVietnam has recently inked strategic cooperation deals to buy the material input from leading Trafigura group of Holland and leading Glencore group of the U.K.
The contracts will span 30 years, according to the CEO.
PetroVietnam will continue its efforts to negotiate with Idenmitsu of Japan to set up a join venture to deploy the project but the ambition may be infeasible due to difficulties such as scarcity of imported oil refining equipment and increasing costs.
Vietnam now has no oil refinery. The first Dung Quat is still under construction and due for operation in February 2009.
The US$2.5-billion Dung Quat oil refinery will be capable of processing 6.5 million tons of crude oil a year and refining 33 per cent of the country’s entire demand for petrol and oil.
It will be capable of producing 2.5 million tons of gasoline a year, 300,000 tons of liquefied petroleum gas (LPG), 270,000 tons of jet fuel each year, 2.3 million tons of diesel oil yearly and 150,000 tons of propylene per year. (Labor)
Vietnamese
