Vung Ro Petroleum powers on

Vung Ro Petroleum, developer of Vietnam’s first licenced foreign invested oil refinery, is seeking suitable location to build supportive facilities for its on-going project.

A company source told VIR that the company would define which facilities could be set up north of central Khanh Hoa province, next to the current project’s site in central Phu Yen province.

According to Khanh Hoa Provincial People’s Committee, Vung Ro Petroleum had expressed interest in setting its base in Van Phong Economic Zone.

Vung Ro Petroleum is a joint venture between UK’s Technostar Management Limited and Russian Telloil Group to develop a $1.7 billion oil refinery, about 560 kilometres north of Ho Chi Minh City.
The company obtained its investment licence in November 2007 with total production capacity of four million tonnes of crude oil.

The firm also plans to build a seaport close to the refinery. However, the project has been delayed years due to site clearance problems. Before the end of 2011 Vung Ro Petroleum received the entire cleared site from the local government and preparation works were underway.

The company source said that land mine and exploration works had already been finished, while the bidding for an engineering, procurement and construction (EPC) contractor was underway. He expected the construction of the refinery could start this year and completed in four years. Currently, Vietnam has an operating oil refinery in Dung Quat Economic Zone of central Quang Ngai province.

The second one, Nghi Son oil refinery in north-central Thanh Hoa province is selecting an EPC contractor while the Vietnamese government is calling for investors for Long Son oil refinery in southern Ba Ria-Vung Tau province.

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