Dung Quat refinery finally opens

January 05, 2011 | 15:00

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After several delays, the inauguration of Dung Quat oil refinery will take place on January 6.

Dung Quat oil refinery costs USD3.054 billion

The state-run Vietnam Oil and Gas Group (PetroVietnam) will hold a long- awaited inauguration ceremony for the nation’s first oil refinery, although the plant has actually been operation since February 22, 2009.

Its products include gasoline A92, A95, liquefied petroleum gas (LPG), kerosene, diesel and jet fuel, fuel oil as well as Polypropylen (PP).

The PP production facility, which was designed by Hyundai Engineering of South Korea, cost over $230 million and has a production capacity of 150,000 tonnes per year.

Over 1,000 Vietnamese engineers and technicians, including 510 people from central Quang Nam province, have been recruited to work for the plant since the end of 2008.

Binh Son Refining and Petrochemical Co. Ltd (BSR), Dung Quat’s operator, has gradually replaced foreign experts with Vietnamese ones to take over functional operation of the plant. The number of foreign experts has been reduced from 141, from South Korea and the U.K, to current 81. That figure is expected to drop to about 40 by end-2011.

By the end of December 2010, Dung Quat had received around 8.3 million tonnes of crude oil, turning out 7.2 million tonnes of refined products to the market during that period. The Jet A1 fuel meets international standards and has been put onto the market.

The plant has been running at its full capacity since it was handed over to PetroVietnam on May 30, 2010.

From the time of the handover to the end of 2010, the facility had posted revenues of VND60 trillion ($3 billion). It is estimated to make a pretax profit of over VND237 billion ($11.85 million) and pay taxes of VND10 trillion ($500 million) during the period. The thresholds for 2011 are forecast at VND77 trillion ($3.85 billion) worth of revenues, VND550 billion ($27.5 million) in pretax profit and VND15 trillion ($750 million) in tax payments.

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