A high feasible project in Hoa Tam industrial zone

Detailed view of Bai Goc deep seaport

Over two years beginning in 2010, PVOS carried out the pre-feasibility study of the port and storage project at Hoa Tam IZ. It began looking at the geology and construction sites for the deep water seaport and storage project within Hoa Tam Industrial Zone (IZ) to assess whether the site was suitable for a large- scale underground storage cavern and would be feasible in conjunction with the planning of the industrial zone itself.

Hoa Tam has been designed to house industrial operations with great demand for petroleum storage, so this suitability was critical to the potential success of Hoa Tam. Our preliminary study shows that the project is feasible and aligned with PVOS’s development strategy in Vietnam. PVOS has committed to be a strategic partner with Hiep Hoa Phat JSC, the developer of Hoa Tam IZ to be a secondary investor in developing the underground storage cavern and port project in Hoa Tam IZ.

On June 17, 2011, PVOS submitted the document No. 243/PVOS –E&P applied for an investment certificate for a crude oil and petroleum products storage project in the Hoa Tam Industrial Zone to the Phu Yen Economic Zone Management Board. This project consists of an underground storage cavern system with 3.1 million cubic meters of storage capacity, an export terminal for vessels up to 80,000 DWT and a single point mooring system to accommodate vessels up to 300,000 DWT for the purpose of development and operation of industrial terminals and tank farms ensuring the importing and exporting of crude oil and petroleum products.

During the implementation of the 1/2000 master plan of the Hoa Tam industrial zone and Bai Goc deep seaport project, the contributions of PVOS and its Korean strategic partners have been invaluable in enhancing the project plan to bring it to world-class standards.

PVOS has worked with Vung Ro Petroleum Company Limited (VRP), the principle investor in the Vung Ro Refinery project, in the past. Vung Ro is considering relocating the Refinery to Hoa Tam Industrial Zone and has recently garnered the approval of the Prime Minister. On July 26, 2011, VRP signed a Memorandum of Understanding (MOU) with PVOS for the purpose of studying investment and construction of the crude oil and petroleum products storage project at the Hoa Tam IZ, of which VRP has expressed its desire to become a strategic partner. They are looking for a 34 per cent equity stake.

Thus, we have committed to strategically cooperate with Hiep Hoa Phat to develop the underground oil storage cavern, single point moorings and liquid jetties as key components of the Hoa Tam industrial zone and Bai Goc deep seaport. VRP has received approval for the project’s relocation to Hoa Tam by the Prime Minister and, in addition, has become a secondary investor in Hoa Tam. These are good signals for the initial development of Hoa Tam as well as PVOS’s crude oil and petroleum products storage project. VRP is dedicated to ensuring its refinery development to be in legal compliance and contribute to the success of sustainable industrial development in Phu Yen province.