Siam Cement Public Company Limited (SCG) signed an agreement with Viet Nam National Oil and Gas Group (PetroVietnam) to acquire the latter’s equity stake in Long Son Petrochemical Co Ltd.

Under the agreement, SCG will acquire 29 per cent stake for more than VND2.05 trillion (US$90 million).

The transaction, made through SCG’s wholly owned subsidiary in the chemicals business, Vina SCG Chemicals Co Ltd, is expected to be completed by the end of June 2018, the Thailand-based cement group said in a press release on May 28.

Upon completion of the deal, SCG’s indirect stake in Long Son petrochemical project will increase from 71 per cent to 100 per cent, of which Vina SCG Chemicals holds 82 per cent and Thai Plastic and Chemicals Public Co. Ltd holds 18 per cent, SCG said.

Long Son petrochemical project, located in Long Son Petrochemical Industrial Park in Vung Tau City, is a key petrol and oil project of the Vietnamese government. Long Son is the third petrochemical complex in Viet Nam after Dung Quat oil refinery and Nghi Son oil refinery and petrochemical complex.

Licensed in 2008 with an initial investment capital of $3.7 billion, the project has raised up to $5.4 billion in investment. It is designed to produce up to 1.6 million tonnes of olefin per year.

After the withdrawal of Vinachem, Qatar Petroleum International and now PetroVietnam, SCG is the sole investor of the project with a 100 per cent equity stake.

The Thai group said the commencement of engineering, procurement and construction activities for the project would begin in the third quarter of 2018, with targeted commercial operations in the first half of 2023. — VNS