Nghi Son joint-venture distributor approved

November 26, 2010 | 15:38

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Deputy Prime Minister Hoang Trung Hai has approved the in-principle establishment of a joint venture to distribute the products of the $6 billion Nghi Son Refinery and Petrochemical Complex.

The PetroVietnam Oil Corporation (PV Oil) will hold at least 51 per cent of the joint venture's total investment capital.

But the Vietnam Oil and Gas Group (PetroVietnam)'s subsidiary must first show that it has the capital and assets for the partnership and the joint venture will not affect its other tasks.

These include nation-wide oil distribution and ensuring price stability in accordance with the government's instruction.

Deputy Prime Minister Hai has also authorised PetroVietnam to decide if its subsidiary can contribute more than 51 per cent.

He required PetroVietnam to carefully assess PV Oil's restructuring of its production and business plans before joining the joint venture.

Nghi Son is Vietnam's second oil refinery.

Located in central Thanh Hoa province's Nghi Son Economic Zone, its planned capacity is 10 million tonnes of crude oil per year, or 200,000 barrels a day, 1.5 higher than the operating Dung Quat refinery.

The refinery will eventually produce 2.3 million tonnes of petrol, 3.7 million tonnes of diesel and a significant amount of liquefied gas for domestic use.

VNS

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