New Plan for Vietnam's Vung Ro Refinery Emerges

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The capacity of Vietnam's planned Vung Ro oil refinery project has increased from 4 million to 8 million tons, and its location has shifted to enable the inclusion of a specialized sea port.

Changes at the refinery, in the coastal province of Phu Yen, were approved by Prime Minister Nguyen Tan Dung and government committees and ministries. The province will have to meet advanced technological requirements and ensure environmental safety before licenses are issued.

The $3.1 billion project is a joint venture between Technostar Management (U.K.) and the Telloil Group (Russia). Investors will benefit from special incentives, including zero export tax and oil distribution. After revising the refinery's capacity and raising investment capital from $1.7 billion, work at the project will begin in mid-2013.

The project is part of Vietnam's strategic development of its oil and gas industry as it integrates internationally. The additional investment was intended to assist in meeting local demand and provide additional petrochemical products for export, according to the province.

The Ministry of Finance has asked for investor funding details to allow the prime minister to determine how much state support would be necessary for additional infrastructure relating to the roads, electricity, water and telecoms.

The Ministry of Planning and Investment will allocate funds from state coffers to develop the Phu Lac resettlement area, Phu Lac fishing port and National Highway 1 from Phu Khe commune to Hoa Tam industrial zone in Phuoc Tan commune.

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