PetroVietnam launched a synthetic oil service port system and a bonded fuel warehouse on Phu Quoc Island in the southern province of Kien Giang on Sunday — Photo PVN

HA NOI (Biz Hub) — The Viet Nam National Oil and Gas Group, better known as PetroVietnam, on Sunday launched a synthetic oil service port system and a bonded fuel warehouse on Phu Quoc Island in the southern province of Kien Giang.

PetroVietNam Technical Services Corp invested VND4.2 trillion (US$192.7 million) in the port system. Covering 116.5 ha of land and 60 ha of sea, the project is to be built in three stages. The first stage will be completed in the second quarter of 2017. The last two stages will begin after 2020.

The construction and operation of the port system will serve the gas exploitation and transport from Block B, 48/95, 52/97 and other gas fields in the region, as well as provide logistics for the socio-economic development of the Phu Quoc Island District and the whole southwest region.

PV Oil invested VND1.4 trillion ($64.2 million) in the fuel warehouse, built on 35.16 ha of land and 60 ha of sea. The first stage, expected in the last quarter of 2017, has a storage capacity of 70,000 cubic metres. The port system will serve vessels with a deadweight tonnage (DWT) of up to 80,000. The second stage will start after 2017.

PV Oil CEO Don Van Nhuom said the project would help the company take advantage of the location to develop its bonded storage business. Domestic and foreign petroleum businesses could rent the warehouse to store products while waiting to transport them to third countries, including ASEAN markets and other countries in the region.

"The oil service port system and bonded fuel warehouse on Phu Quoc Island are two key pioneering projects assisting in the development of southwest gas projects," said PetroVietnam's chairman Nguyen Xuan Son.

Block B is PetroVietnam's main oil and gas project, which will contribute to ensuring national energy security and promoting the socio-economic development of the southwest region.

The launch took place a short time after the group acquired full interest in Chevron Corp's companies in Viet Nam, which gave them the right to operate the production-sharing contracts in the two blocks.

Nguyen Thanh Nghi, vice chairman of Kien Giang Province's People's Committee, said the two projects would not only improve the efficiency of Block B, but also contribute to the overall development of Phu Quoc Island District, Kien Giang Province and Southwest region. He said the provincial authority would create favorable conditions for the projects' implementation. — VNS