Little room for refinery projectsBy Ngoc Lan Investment in oil refineries are not as profitable as expected - PHOTO: TRUNG DIEP The fact that Vietnam National Petroleum Group (Petrolimex) has recently sought the Government’s permission to cancel its US$5-billion Nam Van Phong Refinery and Petrochemical project in Khanh Hoa suggests the craze that started 10 years ago has come to an end. Nearly a month ago, during the meeting of the Prime Minister’s working group, Petrolimex Chairman Pham Van Thanh proposed the Government allow his corporation to stop implementing the Nam Van Phong project so they may invest in others of greater importance. Though Petrolimex has not yet finalized the official documents, the leaders of the Ministry of Finance and the Ministry of Planning and Investment (MPI) at the meeting said they were in line with the proposal. That means the project that was worth nearly US$5 billion a decade ago (which had increased by more than US$1 billion by … [Read more...] about Little room for refinery projects
Dung quat refinery expansion
IPO of Dung Quat Oil Refinery: New momentum for oil and gas sector
BSR leader directing the operation of the Dung Quat Oil Refinery PlantBSR - Highlight of IPO Mr. Tran Sy Thanh, 12th PCC member and Chairman of the Board of Members of PetroVietnam, said the biggest success of BSR, PV Oil and PV Pover is the conversion into joint stock companies (JSC) that is considered an opportunity to restructure and tighten the organization to make the group stronger and more professional. BSR always has highlighted optimization work and scientific research, contributing to cost savings for production activities. In the first 7 months of the year, the saving value of the company is VND563.78 billion, exceeding 16.8% of the assigned value (VND482.64 billion). In addition, it researched and applied technical solutions to increase the capacity of the Dung Quat Oil Refinery Plant to 118%. The main targets set for the 2018-2022 period include: safe, stable and effective production towards sustainability; basically completing the research and expansion of the Dung Quat … [Read more...] about IPO of Dung Quat Oil Refinery: New momentum for oil and gas sector
US investors look to develop expaned Dung Quat Refinery
The joint venture of Wagan Corporation, GHN Group, and Masters Depot and domestic firm Tin Thanh Group Company Limited are looking to co-operate with each other to enhance and expand Dung Quat Refinery. US investors are looking to join the expansion project of Dung Quat Refinery On August 28, the joint venture and Tin Thanh joined a working session with Binh Son Refining and Petrochemical Co., Ltd. (BSR), the investor of Dung Quat Refinery, to look for an investment opportunity in the expansion of the refinery. The parties discussed plans for the input and output of the plant as well as technology to be applied. The expansion is expected to be completed in 2020 and upon completion, the expanded refinery’s capacity will increase by 30 per cent or two million tonnes a year, to 8.5 million tonnes. It will be able to meet half of Vietnam’s fuel demand. The expansion is expected to be completed in 2020, upon completion, the expanded refinery’s capacity … [Read more...] about US investors look to develop expaned Dung Quat Refinery
Lack of credit affects Dung Quat expansion project
Lack of credit affects Dung Quat expansion projectBy Ngoc Lan A view of Dung Quat oil refinery in the central province of Quang Ngai – PHOTO: TTXVN HANOI - The expansion of the Dung Quat oil refinery in the central province of Quang Ngai is scheduled to start this quarter, but difficulties in financial arrangement may cause delays for the project. According to the planned progress of the project, to raise the production capacity of the refinery from 6.5 million tons per year to 8.5 million tons, Binh Son Refining and Petrochemical Co., Ltd, (BSR) will open the first phase of the engineering, procurement and construction contract next month. If it goes smoothly, the expansion project will start commercial operations in 2022. The capital arrangement plan was prepared two years ago and was published in a prospectus when BSR launched its initial public offering. BSR recently confirmed that 30% of the capital amount of US$1,269 million was from equity and 70% was from loans, … [Read more...] about Lack of credit affects Dung Quat expansion project
PM approval sought for Dung Quat oil refinery expansion
PM approval sought for Dung Quat oil refinery expansionBy Quoc Hung - The Saigon Times DailyHCMC - The Vietnam National Oil and Gas Group, or PetroVietnam, is reportedly seeking the Prime Minister’s approval for scaling up the capacity of its Dung Quat oil refinery plant under construction in the central province of Quang Ngai, a source said.Le Van Dung, director of Dung Quat Economic Zone Authority’s Investment Promotion Center, told the Daily on the phone that PetroVietnam was seeking to expand the refinery’s capacity to 10 million tons from the current 6.5 million tons per year in partnership with foreign investors. He said PetroVietnam submitted the proposal to the Prime Minister last month.The country’s first oil refinery covering 338 hectares of land and 473 hectares of water surface is under construction in Binh Son District in the province. The expansion is needed to ensure national energy security and to meet the increasing demands for fuel in the … [Read more...] about PM approval sought for Dung Quat oil refinery expansion
US firm eyes 49% stake in Dung Quat Oil Refinery
At a recent roadshow to promote investment in BSR in Hanoi, Nguyen Thi Thanh Phuong, representative of Polestar in Vietnam, said the group is experienced in exploring and transporting oil and gas, so it wants to buy shares of BRS and PetroVietnam Oil Corporation (PV Oil) to supply crude oil for these two firms.The group will initial a contract with BSR to buy the shares at the end of this month. The group has plans to join the Dung Quat Oil Refinery expansion project, build a storehouse with fuel tanks, implement customs procedures and participate in the fuel export sector wherein PV Oil is a monopolistic player.Vitol Group, a global energy and commodity trading company, also expressed interest in BSR shares, saying it wants to enter the Vietnamese fuel market.BSR planned to offer 7.79% of its shares on the Hochiminh Stock Exchange (HOSE) on January 17 at a price starting from VND14,600 per share. A 49% stake will be sold to strategic investors in the next phase, reducing State … [Read more...] about US firm eyes 49% stake in Dung Quat Oil Refinery
U.S. firm eyes 49% stake in Dung Quat Oil Refinery
Polestar Inc, a firm specializing in oil and gas transport in Texas in the U.S., wants to acquire a 49% stake in Binh Son Refining and Petrochemical Company (BSR), the operator of Dung Quat Oil Refinery. A night view of Dung Quat Oil Refinery, which processes and supplies 30% of fuels on the Vietnamese market At a roadshow to promote investment in BSR last weekend in Hanoi, Nguyen Thi Thanh Phuong, representative of Polestar in Vietnam, said the group is experienced in exploring and transporting oil and gas, so it wants to buy shares of BRS and PetroVietnam Oil Corporation (PV Oil) to supply crude oil for these two firms.The group will initial a contract with BSR to buy the shares at the end of this month. The group has plans to join the Dung Quat Oil Refinery expansion project, build a storehouse with fuel tanks, implement customs procedures and participate in the fuel export sector wherein PV Oil is a monopolistic player.Vitol Group, a global energy and commodity trading … [Read more...] about U.S. firm eyes 49% stake in Dung Quat Oil Refinery
Quang Ngai proposes solutions to Dung Quat refinery difficulties
VietNamNet Bridge – The government of Quang Ngai Province has written to the Government and ministries proposing not applying a regulatory charge of 7% to Dung Quat Oil Refinery and approving the refinery expansion project, according to Tuoi Tre newspaper.From next year, the fuel market will face difficulties in supply and demand plus the Government’s new strict regulations which may reduce profit of Binh Son Refining and Petrochemical Company (BSR), the operator of Dung Quat Oil Refinery.If the Government agrees with the Ministry of Finance’s proposal concerning a regulatory fee applied from 2018 to 2020, BSR’s revenue would annually decrease by VND0.7-3.8 trillion (US$30.83-167.34 million) and its products would become uncompetitive on the local market. Currently, the regulatory charge of 7% is slapped on the country’s first oil refinery to balance import tariffs on fuels and the tax on crude oil imported by the refinery.Quang Ngai authorities said Dung … [Read more...] about Quang Ngai proposes solutions to Dung Quat refinery difficulties
PVN told to clarify oil refinery expansion
PVN told to clarify oil refinery expansionLe Hoang By Le Hoang - The Saigon Times Daily HCMC - Deputy Prime Minister Hoang Trung Hai has urged Vietnam National Oil and Gas Group (PVN) to prepare a report on a project to upgrade and expand Dung Quat Oil Refinery and give an explanation of why the expansion is urgent. The Government Office stressed the clarification request in an announcement released recently to convey the Government’s instruction. The Deputy Prime Minister has also told PVN to evaluate and compare the efficiencies of upgrade and expansion plans for the oil refinery located in the central province of Quang Ngai. The group should analyze the plans with and without investment incentives before and after the oil refinery is expanded. PVN should complete an investment scheme for the expansion of Dung Quat Oil Refiner and report it to the Ministry of Industry and Trade before November 15 this year. The ministry has been assigned to establish a council consisting … [Read more...] about PVN told to clarify oil refinery expansion
Petrolimex to acquire stake at Dung Quat Oil Refinery
Petrolimex to acquire stake at Dung Quat Oil RefineryLan Nhi HANOI - Vietnam National Petroleum Corp. (Petrolimex) on August 10 signed a memorandum of understanding with Binh Son Refining and Petrochemical Co Ltd (BSR) to buy BSR shares at an initial public offering (IPO) set for late this year. The two sides agreed to become strategic shareholders of each other. BSR, the operator of Dung Quat Oil Refinery in the central province of Quang Ngai, plans to sell 50% of the State stake. After Petrolimex’s IPO in July 2011, the State stake is now down to 75.87%. Petrolimex, which buys 42% of BSR’s fuel output, the highest in the country, will secure a stable outlet for BSR’s petrol, liquefied petroleum gas (LPG) and petrochemical products. Petrolimex will be a priority partner to export Dung Quat’s fuels to Laos and Cambodia. After seven years of operation, Dung Quat Oil Refinery has sold more than 47.2 million tons of fuels, meeting 40% of domestic needs, gained … [Read more...] about Petrolimex to acquire stake at Dung Quat Oil Refinery