Preferential finance needed for first oil refinery

The Vietnam National Oil and Gas Group (PVN) has proposed that the Ministry of Finance accept preferential financial mechanism for the Dung Quat Oil Refinery based in Quang Ngai province, the same as the one to be applied to the Nghi Son Oil Refinery project in Thanh Hoa province.

PVN said even when this mechanism is adopted, the plant’s rate of return on investment (ROI) will still stand at 5-10 percent on average.

PVN said the new amount of investment for the refinery -  US$3 billion - is US$500 million bigger than the amount approved before the projects restarted in 2005.

The Dung Quat Oil Refinery project has so far played an important role in attracting 160 investment projects with a total registered capital of US$10.3 billion to the central province of Quang Ngai. The plant has also imported additional crude oil from other countries in the region to meet its demands.

In July 2009, the Prime Minister asked PVN to work with the Ministry of Finance to develop a new financial mechanism for the Dung Quat Oil Refinery.

vov

>   Seaport project pilots Public/Private partnership (11/08/2009)

>   80,000 tonnes of pepper exported in seven months (11/08/2009)

>   PetroVietnam hastens plans for ethanol plants in centre, south (11/08/2009)

>   Rubber export turnover falls with world price (11/08/2009)

>   Firms told ’improve conditions’ (11/08/2009)

>   Vietnam faces huge trade deficit with Taiwan (11/08/2009)

>   Joint-venture tour operators to run outbound services (11/08/2009)

>   Rubber industry to work with regional growers to boost exports (11/08/2009)

>   You want to export some fertilizer? ‘Get a quota,’ says MOIT (11/08/2009)

>   Study on express railway to Mekong Delta okayed (10/08/2009)