PetroVietnam Seeks Partners

HA NOI (VNS)— PetroVietnam (PVN) is calling for European Union partners to support 40 of its projects in the areas of power production, finance and petroleum technical services.The group’s general director, Do Van Hau, made the statement at a conference titled “Partnership with PetroVietnam – Exclusively for European Investors” held in Ha Noi yesterday.

Hau said PetroVietnam needs $40 billion by 2015 to implement several important investment projects, with the aim of further developing to meet its restructuring plans.

“This is the reason that we want to co-operate with EU partners to ensure we have capital for the projects,” he added.

PVN want to lure investors to some of their key projects, including power plants (coal-fired, thermal and hydropower), oil pipelines, a port in Phuoc An, a shipyard in Dung Quat, and financial and construction companies.

Answering questions from potential EU investors, PVN’s deputy general director Nguyen Tien Dung said that they would benefit from preferential policies for investing in the projects. He also called for EU partners to consider investing in offshore petroleum exploration work, which is an area that PVN has accelerated operations in.

Dung assured them that investments would be safe, as price calculation methods are in place to monitor risks in the foreign exchange rate (forex). However, he suggested that foreign investors still apply risk prevention measures and pay attention to the forex transfer.

He told the audience that investors will be able to work closely with PVN and the Government to ensure their benefits.

In addition, he said that a suitable rate would be applied on capital return for investors who made effective contribution to projects.

General director Hau outlined plans for a major project constructing an oil refinery plant in Nghi Son, in the north-central Thanh Hoa Province.

He said an Engineering, Procurement and Construction (EPC) agreement would be signed at the beginning of December promising a US$5 billion investment in the project (which is expected to cost $7 billion).

The project is a joint venture between PetroVietnam, Kuwait Petroleum International Ltd (KPI), and the Japanese firms Idemitsu Kosan Co (IKC) and Mitsui Chemicals Inc (MIC).

A feasibility study for the development has been completed and all relevant parties are promptly preparing for construction work to begin.

The selected contractors are the same who built the Dung Quat Oil Refinery Plant.

The new plant will initially have a capacity of 10 million tonnes per year – 1.5 times higher than the design capacity of the Dung Quat Oil Refinery. It will become the country’s biggest petrochemical complex.

The refinery will annually churn out 2.3 million tonnes of petrol and 3.7 million tonnes of diesel as well as liquefied gas (LPG) when it comes into operation by 2014.

Nghi Son and Dung Quat refineries together are expected to meet 50 per cent of the country’s petrol and oil demands. — VNS

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