Vung Ro Petroleum last week received an amended investment certificate from the local authorities to increase the investment capital in its oil refinery and petrochemical project from $1.17 to $3.18 billion.
At the same time, the investor – a wholly-owned subsidiary of the UK’s Technostar Management Limited – signed an engineering, procurement and construction (EPC) contract with Japan’s JGC Corporation to build the project in the central province of Phu Yen. JGC is already involved in the $9 billion Nghi Son oil refinery and petrochemical complex in the central province of Thanh Hoa.
“This is an important step to allow the investor to break ground on the project as soon as possible,” said Pham Dinh Cu, Chairman of Phu Yen Provincial People’s Committee.
Last year, Vung Ro Petroleum signed a technology transfer agreement with Honeywell’s UOP, a leading international supplier and licensor for petroleum refining and petrochemical production.
Vung Ro Petroleum’s original investment certificate only planned on output of four million tonnes of crude oil, but the investor felt eight million tonnes was achievable.
The complex is slated to start commercial operations by 2016 and will produce a wide range of products including gasoline, polypropylene, benzene, toluene, xylene, and diesel. The products will be distributed throughout the country as well as exported.