Vietnam's sole refinery plans to sell 5%–6% stake in IPO in Q4

HANOI (Reuters) — Vietnam's Dung Quat oil refinery plans to sell a 5%–6% stake in the company in the fourth quarter of 2017 via an initial public offering (IPO), it said in a statement.

Photo Courtesy of PetroVietnam.
Photo Courtesy of PetroVietnam.

The IPO is part of a government plan to sell state-owned enterprises including Binh Son Refining and Petrochemical Co, which runs $3 B Dung Quat. It is currently the sole refinery operating in the country.

The firm sell up to 36% to strategic partners within 12 months of the IPO, state media reported.

The statement did not disclose how much Binh Son might aim to raise in the IPO.

Binh Son's officials were not immediately available to comment.

Rosneft, Russia's biggest oil producer, Gazprom Neft (GPN), Thailand's top energy company PTT and the Kuwait Petroleum Corp are among foreign firms that have expressed interest in Dung Quat, located in the central province of Quang Ngai.

The refinery will shut for maintenance from June 5 to July 23.

Vietnam's second oil refinery, Nghi Son, is being built by investors including Binh Son parent PetroVietnam at a cost of $7.5 B. It is due to come on stream in 2017, the statement said.

Reporting by My Pham; Additional Reporting by Mai Nguyen; Editing by Edmund Blair

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