PetroVietnam seeks JV with Idemitsu

State-owned PetroVietnam said it is considering using domestic funds to build its US$6 billion Nghi Son oil refinery if negotiations with foreign companies fail. The refinery, to be located in Thanh Hoa province, 180 km south of Hanoi, Vietnam, is expected to have an annual processing capacity of 7 million metric tons. PetroVietnam Chairman Dinh La Thang told state media that the company wants to form a joint venture with Japan’s Idemitsu Kosan Co. to build the refinery. However, “if the investment costs are too high, PetroVietnam will have to build it with domestic sources,” he said. The project’s domestic partners will include Vietcombank with a 10% stake, Agribank with 10%, Petrolimex with 10% and VNPT with 8%. It will have a processing capacity of 6 million tons a year when it comes on-stream in early 2009. (October 15, 2007)