U.K.-Russia JV to double annual capacity to 8 million tons

A joint venture between the U.K’s Technostar Management Ltd. and Russia’s Telloil is negotiating with a Moscow-based company to seek capital for a project which will double the annual capacity of the Vung Ro oil refinery in the central province of Phu Yen to eight million tons of crude oil. It is also seeking a green light from the Vietnamese government for the project. Total investment in the long-delayed project will hit US$2.5 billion. The refinery was licensed in November 2007, however, its construction has been delayed many times because of slow site clearance. The U.K.-Russia JV has given provincial authorities US$7 million to assist in site clearance and resettlement for displaced residents. The construction is expected to be delayed until the end of this year or early next year due to the changes in stakeholders and in its capacity. (April 25,2011)