By VU TRONG KHANH
HANOI -- OAO Gazprom Neft, the oil arm of Russian
state-controlled gas giant OAO Gazprom, is seeking to join a project to upgrade Vietnam's Dung
Quat refinery, Vietnam's Ministry of
Planning and Investment said Thursday.
Gazprom Neft executives told Minister of Planning and
Investment, Bui Quang Vinh, at a meeting in Hanoi Thursday that
the company has experience in modernizing and expanding
refineries not only in Russia but also in other countries.
Mr. Vinh said Vietnam supports Gazprom Neft's bid to
participate in the Dung Quat project, adding that the company
needs to commit to supplying crude oil for the refinery.
The 130,000-bpd Dung Quat refinery, which became operational
in 2009, was designed to process sweet crude oil from Bach Ho
field offshore Vietnam.
Vietnam Oil & Gas Group, the owner of the refinery, is
planning to upgrade the refinery so that it can process other
types of crude oil, given that output from Bach Ho has been
declining over the recent years.
It had also said earlier it planned to sell a 49% stake in the
refinery to foreign investors and
use the proceeds to expand capacity to 200,000 bpd.
Dow Jones Newswires