The oil tanks at Dung Quat Oil Refinery. — Photo vnplus.vn

HA NOI (Biz Hub) — Binh Son Refining and Petrochemical Company Limited (BSR) signed a contract on August 28 with UK-based Amec Foster Wheeler Energy Limited to outline a master design for the Dung Quat Oil Refinery expansion project in central Quang Ngai Province.

The contract, worth US$25.6 million, will be carried out beginning this month and continue until November 2016.

Speaking at the signing ceremony in Ha Noi, Deputy General Director of Viet Nam National Oil and Gas Group (PetroVietnam) Le Manh Hung asked Amec Foster Wheeler Energy Limited to carefully follow the signed contract's clauses.

Hung asked the firm to carry out the overall design for the expansion project, ensuring that Dung Quat Oil Refinery operates using the latest technologies and will remain competitive in the future.

Amec Foster Wheeler Energy Limited serves the oil and gas, clean energy, environment and infrastructure, and mining markets. It also offers consultancy, engineering, project management, operations and construction services, project delivery and specialised power equipment services to customers worldwide.

At the ceremony, Hung requested BSR and its management board to closely supervise the contractor and design work to ensure the smooth operations of the project and the performance of the highest quality of work, as called for in the contract.

The Dung Quat Oil Refinery was designed to process crude oil from the Bach Ho oil field, with a capacity of 6.5 million tones per year. It began operations in May 2010.

The refinery's expansion project, estimated to cost some $1.813 billion, will take 78 months and is expected to be completed by 2021.

Once completed, the expanded refinery is capable of producing 8.5 million tones of crude oil per year, while meeting EURO 4 and EURO 5 standards, the Vietnamese Government's requirements on environmental standards, along with domestic demands on petrochemical refineries. — VNS