PetroVietnam hopes to close the deal to build Nghi Son oil refinery

Vietnam Oil and Gas Group (PetroVietnam) is looking to get an engineering procurement and construction contract (EPC) for the US$8 billion Nghi Son oil refinery. According to PetroVietnam Chairman Dinh La Thang, “The EPC contract will be clinched if chosen contractors agree to decrease US$50 million for the US$5.3-billion agreement, otherwise PetroVietnam will select other contractors” Chairman Dinh La Thang said. Thang went on to say that if everything goes smoothly, construction can start on the refinery this quarter. The new refinery will have an annual capacity of 10 million tons of crude oil. By 2014, the plant could be producing 2.3 million tons of gasoline, 3.7 million tons of diesel fuel, LPG and other oil products. PetroVietnam is joining with Kuwait Petroleum International Ltd., Idemitsu Kosan and Mitsui Chemicals Inc. of Japan in financing the project. (April 6, 2011)