Vietnam Oil and Gas Group (PVN) will next month sign an engineering, procurement and construction (EPC) contract with a consortium of five contractors to carry out the Nghi Son oil refinery plant project, said Do Van Hau, general director of PVN.
The contractors are Japan’s JGC Corporation and Chiyoda, France’s Technip Coflexip, South Korea’s GS Engineering & Construction, and SK Engineering & Construction. JGC Corporation is the representative of the consortium.
The feasibility study for the project located in the north-central province of Thanh Hoa has been completed. Related sides are preparing to sign the EPC agreement in December to start work on the project in May 2013, he said.
The project’s scale was approved about seven years ago with a total investment of more than $6.2 billion. It was designed with total annual capacity of some 8.4 million tonnes, or 180,000 barrels of oil a day, with the EPC bidding package estimated at over $5 billion in value.
Involved parties have contributed capital to set up a company named Nghi Son Oil Refinery and Petrochemicals Company to operate the future oil refinery, with PVN holding 21.1 per cent, Kuwait’s Petroleum Group 35.1 per cent, Japan’s Idemitsu Kosan Petroleum Group 35.1 per cent and Mitsui Chemicals 4.7 per cent.
The plant is set for completion in 2014 and will focus on producing liquefied petroleum gas (LPG) and gasoline products A92, A95 and A98, jet fuel and diesel oil. It is the second largest oil finery plant project in Vietnam in terms of the scale after the Dung Quat oil refinery plant.
When in place, the facility along with the Dung Quat plant is expected to meet 50 per cent of local fuel demand.
Foreign media earlier this month reported that Idemitsu Kosan had decided to delay investment into the oil refinery project but Hau of PVN on November 8 told local media that such a decision had no impact on the scheme’s construction.
The management board of the Nghi Son Economic Zone in May 2008 handed the investment certificate for the Nghi Son oil refinery plant to Nghi Son Oil Refinery and Petrochemicals Company.
Kuwait’s Petroleum Group will supply crude oil to the project, at about 10 million tonnes per annum in the first phase. The group will possibly increase the volume to 20 million tonnes annually after the project is expanded in the future.
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