Design of the oil refinery complex in Nhon Hoi Economic Zone. – Photo Binh Dinh People's Committee

BINH DINH (Biz Hub) – Saudi Arabian oil company Saudi Aramco will be the strategic partner of the Petroleum Authority of Thailand (PTT) in the oil refinery project in Binh Dinh's Nhon Hoi Economic Zone.

PTT and Saudi Aramco have submitted a feasibility study on the oil refinery project to the Ministry of Industries and Trade (MoIT), chairman of the central coastal province of Binh Dinh's People's Committee Le Huu Loc told online VnExpress.vn on September 11.

The feasibility study is scheduled to be scrutinised in a month before it is submitted to the Prime Minister for approval.

"That PTT selects such a big company like Saudi Aramco for the project signals the feasibility of the project, because this partner could help ensure crude oil sources for the refinery complex," said Loc.

The project is named Victory and its investment has been reduced to US$ 22 billion from $28.7 billion. The planned capacity of the project has been cut to 400,000 barrels a day (equivalent to 20 million tonnes of crude oil per year), instead of 600,000 barrels a day as the initial proposal.

The downsizing of the scale of the project has explained by PTT's representative to be the result of cutting down from two crude oil processing chains to one processing chain. The production will therefore be more effective, according to vnexpress's source.

PTT wants to be entitled to receive privileged policies from the government just as the Dung Quat, Nghi Son and Vung Ro oil refinery projects do.

PTT and Saudi Aramco are inviting domestic businesses to join the project.

Once the project is approved, PTT expects to complete the procedures to start it in 2016 and release its first products in 2021.

Saudi Aramco is the state-owned oil company of the Kingdom of Saudi Arabia, with operations in exploration, production, refining, marketing and international shipping of oil. The company claims to be the world's leading oil company in crude oil production and exports, and natural gas liquids (NGL) exports, and is among the leading producers of natural gas. – VNS