A bird's eye view of Dung Quat Refinery. The refinery is expected to be privatised in 2017. — Photo infonet.vn

Dung Quat Refinery is working with foreign oil groups to seek strategic investments for its privatisation, which is expected to be carried out in 2017.

Several foreign investors were showing interest in buying stakes at Dung Quat Refinery, according to Tran Ngoc Nguyen, general director of the refinery’s operator Binh Son Oil Refining and Petrochemical Company Limited (BSR), a subsidiary of Viet Nam National Oil and Gas Group (PetroVietnam).

Nguyen noted that 2017 would be the year for the oil refinery to be privatised.

BSR was actively working with foreign companies, including those from Russia, Thailand, Singapore and South Africa, to seek investments in Dung Quat Refinery, he added.

Regarding Gazprom Neft, which was previously reported to have dropped plans for buying a stake in the Dung Quat Refinery, Nguyen said the Russian oil producer still eyed buying stakes in the refinery.

He noted that the evaluation of the refinery’s assets were already completed and submitted to PetroVietnam and the Ministry of Industry and Trade for approval. The asset value of Dung Quat Refinery is expected to be made public in mid-March 2017.

“The privatisation will help BRS to enrich its financial resources to invest in oil refining and petro-chemistry,” he added.

BSR, meanwhile, said domestic consumption would be prioritised now, as the oil refinery’s capacity met only 40 per cent of domestic demand. However, it would expand exports in the next five to 10 years and focus more in petro chemistry in order to compete.

Nguyen also said the plant will improve corporate governance to reduce product costs.

2016 was regarded as a successful year for BSR, with total output of 6.84 million tonnes and consumption of 6.8 million tonnes. The company earned estimated revenues of VND72.5 trillion (US$3.2 billion) in 2016 and contributed nearly VND12 trillion to the State budget. — VNS