Russian group eyes stake in Vietnamese refinery
Russian group eyes stake in Vietnamese refinery
A Russian group has visited the Quang Ngai-based Dung Quat Oil Refinery, the sole such facility in Vietnam so far, to seek investment chance there, the plant’s operator confirmed with Tuoi Tre on Friday.
“The GazpromNeft Group wanted to cooperate in upgrading and expanding the refinery,” said Nguyen Hoai Giang, chairman of the Binh Son Oil Refining and Petrochemical Co, which operates the US$2.5 billion facility that started commercial operations in 2009.
Dung Quat Refinery is seeking investment to increase its capacity of producing 6.5 million tons of products per year to 10 million tons per year.
To this end, the Russian firm suggested that it would buy a 36 percent stake of the refinery, a plan the Vietnamese investment ministry has welcomed and agreed upon.
Giang said GazpromNeft is the latest among dozens of international investors to show interest in the Dung Quat project over the last two years.
Previously, the Japan-based JX Nippon, Petróleos de Venezuela SA of Venezuela, and South Korea’s SK have also come and studied about the stake buying of the refinery, he said.
Still, Giang noted that the Russian company’s plan is not enough to help fully implement the upgrading plan.
“The Russian group must buy a 49 percent stake in order to help increasing the facility’s capacity,” he elaborated.
He however expressed his hope that an international investor will officially ask to partake in the plan soon as the feasibility report for the project is due this month.
“The main contractor, Japan-based JGC, will complete the report and submit to the government for approval,” he said.
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