Petrovietnam, partners to delay construction of new Nghi Son refinery

By VU TRONG KHANH

HANOI -- Petrovietnam, and its partners from Japan and Kuwait, will start the construction of Vietnam's second oil refinery in September or October this year, instead of this month as planned, local media said.

The $9 billion Nghi Son complex, to be located 180 km south of Hanoi, will have a refining capacity of 200,000 bpd. It will process Kuwaiti crude oil supplied exclusively by Kuwait Petroleum International.

"According to our previous plan, construction would begin in July, but it will be delayed until September or October," Petrovietnam Chairman Phung Dinh Thuc was quoted as saying in online news provider Dan Viet's report.

Mr. Thuc said all the partners have arranged sufficient funds for the project, but didn't provide a clear reason for the delay, according to the report.

Petrovietnam executives weren't immediately available for comments.

Idemitsu Kosan and Kuwait Petroleum each own a 35.1% stake in the project, while Petrovietnam and Mitsui Chemicals own 25.1% and 4.7%, respectively.

Petrovietnam will buy all oil products from Nghi Son at Asian market prices, as its output is primarily intended to meet the needs of Vietnam's domestic market. It is also allowed to export any excess production to avoid reducing the refinery's operating rate.