Energy storing facilities in Vung Ro Bay, Phu Yen. Concerned agencies will break ground for the $3.18-billion Vung Ro Oil Refinery in Phu Yen on September 9. — File photo

HA NOI (Biz Hub) ─ The concerned agencies will break ground for the US$3.18-billion Vung Ro Oil Refinery in the south-central Phu Yen province on September 9, announced provincial People's Committee chairman Pham Dinh Cu.

The local authorities handed over 134 hectares of land at Bai Goc Port to Vung Ro Petroleum Ltd to begin work on the project in May.

The work of conducting geological surveys, site clearance, resettlement and other support activity for this area have been completed, Cu said.

The Vung Ro Petroleum Ltd is a joint venture between the UK's Technostar Management Ltd and Russia's Telloil Group.

The investor has signed contracts with several partners on technology supply and finance, law, auditing and environmental assessment consultancy.

The project partners include UOP, StormHarbour, Skadden Arps, KPMG and Eco companies.

The refinery will be built in the Hoa Tam Industrial Zone in the South Phu Yen Economic Zone, using about 680 hectares of land and 500 to 1,300 hectares of water area.

Technostar Management increased the investment capital for the project from $1.7 billion to $3.18 billion last year following Government approval, aiming to double the plant's output to eight million tonnes of products per year.

The company made the adjustments based on market demand, since the project was first licensed in 2007.

The plant is listed in the nation's investment portfolio especially formulated to ensure energy security.

It is expected to create jobs for 1,300 employees and contribute about $111 million to the State budget every year when it becomes operational, Cu added. ─ VNS