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Dung Quat oil refinery secures its final completion capital
The Vietnam National Oil and Gas Group (PetroVietnam) has secured all the capital it needs to complete the nation’s first oil refinery, thanks to Britain’s Standard Chartered bank.
Under the contract signed in Hanoi on December 2, the British bank will be responsible for arranging a total of 250 million USD in loans with 11 foreign banks. They will serve as accountant guarantor of the credit package.
Out of 3 billion USD budgeted for the construction of the Dung Quat project in the central coastal province of Quang Ngai , 1.7 billion USD was to come in the form of loans.
Earlier, PetroVietnam secured loans worth 1.45 billion USD from domestic banks such as the Vietnam Development Bank, the Vietnam Bank for Industry and Trade (VietinBank) and the Bank for Foreign Trade of Vietnam (Vietcombank). This final loan via Standard Chartered brings the total capital needed in line with the target.
Once completed, by January, 2010 at the latest, the Dung Quat oil refinery will process 6.5 million tonnes of crude a year, meeting some 30 percent of national demand for oil and gas.
The refinery rolled out its first line of products on February 17, 2009.
Later, on December 2, PetroVietnam signed an agreement of cooperation in principle with Standard Chartered for another loan package worth 1.5 billion USD, under which the British bank will arrange the credit over three years.
Standard Chartered will also work with the national oil and gas giant in cash management, commercial assistance and personnel training.
vietnamplus
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