Shortlist due for Binh Dinh's $27b oil project

Tuesday, Aug 13, 2013 08:00

HA NOI (Biz Hub)— The Binh Dinh People's Committee and the Petroleum Authority of Thailand (PTT) will on Thursday announce the list of international bidders and consultants for the mooted large-scale Nhon Hoi oil refinery project.

Tran Thi Thu Ha, deputy chairwoman of the People's Committee, was one of a number of local politicians and experts to speak about the proposed development of the major Thai-invested petrochemical complex during a dialogue co-hosted by the Voice of Viet Nam (VOV) and the Binh Dinh Radio and TV Station on Sunday.

During the discussions, experts proposed practical measures be put in place to ensure the effective implementation of the US$27-billion investment, which is slated to be built in Nhon Hoi Economic Zone.

The Ministry of Industry and Trade said it has asked the Prime Minister to include the project in the national oil and gas zoning plan running to 2015.

Deputy Prime Minister Hoang Trung Hai called for the People's Committee to supervise the investors in building the project and for the ministry to assess the efficiency and ability of the work.

When operational, the refinery will have a capacity of 660,000 barrels per day, or 30 million tonnes of crude oil per year, a five-fold increase over the output of Dung Quat, Viet Nam's current largest oil refinery.

The new facility is expected to use crude oil imported from the Middle East (45 per cent), Africa (25 per cent) and South and Central America (30 per cent). Its products will supply domestic demand as well as exports to other countries in the region.

The PTT has finished a feasibility study on the project and late last year Binh Dinh's provincial authority submitted the plans to Prime Minister Nguyen Tan Dung to be considered and approved.

The province has decided to set up a consultancy team with professionals experienced in refineries, finance, banking and the environment. The group will closely work with the PTT in handling any inquiries raised by ministries.

Construction of the project is expected to begin in 2016 and the refinery to be commercially active by mid-2020.

If the Government approves the plan, it will be the biggest foreign-invested project in Viet Nam.

Meanwhile, the participants in the dialogue stressed the need to develop infrastructure in Nhon Hoi Economic Zone (EZ), provide incentive policies for foreign investors and develop human resources to meet demand for skilled workers in the EZ.

Since the beginning of this year, Binh Dinh Province has attracted 52 foreign direct investment (FDI) projects with a total capital of $1.7 billion. — VNS

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