Could you tell us about the progress that’s been made in negotiations on upgrading and expanding the Dung Quat Oil Refinery?

Some high-ranking Russian delegations recently visited Vietnam and expressed their wish to cooperate with the Vietnamese side in upgrading and expanding the Dung Quat Oil Refinery. BSR and PetroVietnam highly appreciated the capability and potential as well as the desire for cooperation among the Gazprom Neft Group.

Dung Quat Oil Refinery

Following the guidance of Prime Minister Nguyen Tan Dung, the Vietnamese Ministry of Industry and Trade has presided over the second round of negotiations with the Russian Ministry of Energy on signing an intergovernmental agreement on investment cooperation in upgrading and expanding the Dung Quat Oil Refinery. The two sides showed their goodwill and took active part in negotiations.

BSR has taken the initiative in conducting a feasibility report based on Gazprom Neft’s opinions so that PetroVietnam can submit it to the government at the earliest possible moment and make an investment decision. BSR has carefully prepared for the next steps and drafted a front-end engineering design (FEED) for the project.

How will the project be developed if the negotiations are successful?

BSR has considered various technological and investment options and chosen to propose the most feasible option which requires total investment of less than US$2 billion (over VND40 trillion). This option will ensure high economic and technical feasibility. Working with a joint venture partner, BSR will have many advantages in terms of management and capital arrangement as well as other advantages which help it develop rapidly and in a sustainable manner.

Why did PetroVietnam and BSR want to seek partners in developing this project?

Upgrading and expanding the Dung Quat Oil Refinery is very necessary and remains an urgent task which will help Vietnam improve its position, competitiveness and economic efficiency, going in line with the government’s roadmap for applying the Euro 4 standard on gas emissions. Currently, the Dung Quat Oil Refinery just meets Euro 2 standards./.

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