Petrovietnam seeks Dung Quat refinery partner

Petrovietnam plans to sell a 49% stake in its Dung Quat refinery, which is scheduled to go online in February (OGJ Online, Dec. 11, 2008).

Eric Watkins
Oil Diplomacy Editor

LOS ANGELES, Jan. 6 -- Petrovietnam plans to sell a 49% stake in its Dung Quat refinery, which is scheduled to go online in February (OGJ Online, Dec. 11, 2008).

"Petrovietnam would appraise the refinery's value and negotiate with foreign partners before selling the stake," said Petrovietnam chairman Dinh La Thang.

The Vietnamese firm, which plans to give preference to international partners committed to supplying oil to the refinery, is expected to begin talks with BP PLC next week.

Dinh said the negotiations would focus on price and quality, and the possibility that BP would provide at least 50% of the total oil for the refinery.

Petrovietnam has decided to import oil for the refinery as Vietnam's own oil and gas reserves are limited and could earn the country more revenue as an export because they are of higher quality than that required by the new facility.

The Dung Quat refinery is about 98% complete, according to Dinh Van Ngoc, deputy general director of the Binh Son Petrochemical Co., which manages the refinery.

Dinh said the refinery's capacity would stand at 50% in February, but would increase to 100% by yearend, when it will process some 6.5 million tonnes of oil.

Contact Eric Watkins at hippalus@yahoo.com.

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