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2015-04-09 19:00:00

GAZPROM BUYS 49%

GAZPROM BUYS 49%

Russia's JSC Gazprom Neft has entered an agreement with Vietnam National Oil & Gas Group (PetroVietnam) to purchase a 49% interest in the 6.5 million-tonne/year Dung Quat refinery.

The agreement, signed on Apr. 6, grants Gazprom Neft exclusive rights to negotiate its acquisition of PetroVietnam's shares in the refinery, which is owned and operated by PetroVietnam subsidiary Binh Son Refining & Petrochemical Co. Ltd. (BSR), Gazrpom Neft said.

This latest contract follows previous agreements between Gazprom Neft and PetroVietnam to increase collaboration on joint oil and gas ventures as part of a strategic partnership formed in 2009.

Gazprom Neft's share of investment in the previously announced expansion and modernization of Dung Quat, which was commissioned in 2009 and remains Vietnam's only operating refinery, will be proportionate to its share in the plant, the Russian company said.

In addition to improving the efficiency of Dung Quat's technological processes to enable production of Euro 5-standard motor fuels, the planned modernization project will boost the refinery's crude oil processing capacity to 8.5 million tpy.

Gazprom Neft disclosed neither a timeline nor price for the acquisition of its minority interest in the refinery.

While PetroVietnam confirmed in a Dec. 17, 2014, release that BSR continues to actively carry out activities related to the modernization and revamp of Dung Quat, the company said it does not expect to commission the fully expanded and upgraded refinery until 2022.

ogj.com

Tags: RUSSIA, GAZPROM, PETROVIETNAM, OIL, GAS

Chronicle:

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