Gazprom eyes 49% stake in Dung Quat Oil Refinery

June 18, 2014 | 08:33

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Gazprom Neft plans to buy a 49% share in Binh Son Refining and Petrochemical, a member of PetroVietnam, which also controls and manages the Dung Quat refinery.

Dung Quat Oil Refinery

Chairman of Russian energy giant, Gazprom, Alexander Valeryevich Dyukov, has signed a framework agreement with Vietnam Oil and Gas Group (PetroVietnam) concerning Dung Quat Oil Refinery’s planned modernisation programme.

The CEO of PetroVietnam, Do Van Hau, approved of Gazprom's proposed acquisition and the plan to expand and improve the refinery. Hau also said that with the technical and financial backing Gazprom, the capacity of Dung Quat refinery could increase by 10 million tonnes per year. This figure can meet 50% of Vietnam's needs for oil and gas.

Dyukov agreed with PetroVietnam's proposal for a joint research project for the refinement of crude oil. The Russian Ministry of Energy also gave their stamp of approval and stated that they hope the two sides can speed up the negotiations to find most suitable solutions.

Gazprom now owns over 70 licenses for oil production in Russia, producing more than 60 million tonnes per year. The Dung Quat Refinery is a key factor in Vietnam's strategy to improve the central region's economy. In 2013, revenue form Binh Son Refining and Petrochemical was over VND150 billion. A representative from Binh Son said that the Dung Quat Refinery is in its second major maintenance phase. The refinery will return to normal operation by mid July.

vneconomy, dtinews

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