Binh Son Refinery (BSR) has received bids for a $1.8 billion upgrade and expansion project from two consortiums led by Hyundai Engineering & Construction and Technip Italy.
|Hyundai E&C and Technip both submitted bids to upgrade Dung Quat oil refinery |
Binh Son Refining and Petrochemical said in a statement that it received documents from two consortiums led by Hyundai E&C and Technip Italy.
The project would raise the refinery’s capacity by 30 per cent to 8.5 million tonnes of crude oil a year, or 170,000 barrels per day.
A company source told Reuters on Thursday they would name the winner of the bid in about a month.The source added that the refinery was running at full capacity after it was restarted more than a week ago, following a 50-day shutdown for maintenance.
“The expansion and upgrade of the refinery is a necessary and urgent task to ensure the flexible, stable, and efficient operations of the refinery, enabling it to process more types of crude oil,” the company said in the statement.
The 130,000-barrel-per-day refinery in the central province of Quang Ngai started commercial operations in 2009. It was originally designed to process mostly crude oil from Vietnam’s Bach Ho field, whose production has peaked.
The Hyundai E&C-led consortium also consists of Hyundai Engineering Co., according to Binh Son. The other consortium includes Technip Italy, Technip Geoproduction, Technip France, PetroVietnam Technical Services Corporation, and Lilama Corp.
Binh Son said work on the expansion and upgrade of the refinery would start in August 2021.