BRS to borrow $1.2b for oil refinery expansion

Monday, Dec 05, 2016 13:33

The expansion project of Dung Quat Oil Refinery aims to increase the stable supply of crude oil in accordance with the Euro 5 emission standard. — Photo

Binh Son Refining and Petrochemical Company Limited (BSR) plans to borrow US$1.2 billion to upgrade and expand its Dung Quat Oil Refinery in Binh Son District in Quang Ngai Province.

BRS CEO Tran Ngoc Nguyen told the company would this month select the consulting unit, which would arrange loans with banks for the project.

According to BRS, the expansion project’s investment capital is estimated at $1.82 billion, 30 per cent of which will come from the company’s budget while the remaining 70 per cent will come from banks.

Once completed, the refinery’s annual capacity will reach 8.5 million tonnes of crude oil from the current volume of 6.5 million tones, increasing the stable supply of crude oil in accordance with the Euro 5 emission standard.

Euro standards are a series of emission control standards compiled by the European Union for all new land vehicles. Presently, Euro 5 is widely used across European countries.

In Viet Nam, the Euro 4 standard will be officially put in use by early 2017. The Euro 5 standard will be operational by January 1, 2020.

The preparation work for the expansion project has been carried out in accordance with a set process, including front-end engineering design (FEED) contract, resettlement areas, site clearance, compensation and the selection of engineering procurement and construction (EPC) contractor.

The project will finish the FEED contract in April next year. Small projects on site clearance, compensation and resettlement will be completed before May.

Last month, Citibank arranged loans with banks Cathay United, DZ Bank, SMBC and Mizuho, as well as CACIB, DBS and OCBC, for the Song Hau 1 thermoelectric plant in the southern province of Hau Giang, with total loans worth $1.2 billion. The project, invested by the Viet Nam Oil and Gas Group (PetroVietnam), has total investment capital of $2.03 billion. — VNS

Comments (0)