Nghi Son refinery project still moves on

     VietNamNet Bridge – According to officials of the Vietnam Oil and Gas Group (PetroVietnam), the negotiation process to build the Nghi Son oil refinery in the central province of Thanh Hoa just slows down a bit after the Japanese partner adjusted its funding plan.

     Japan announces investment delay in Nghi Son refinery project

PetroVietnam General Director Do Van Hau.

PetroVietnam General Director Do Van Hau.

Mr. Do Van Hau, General Director of PetroVietnam affirmed that the decision to adjust the funding plan of the Japanese partner does not affect the progress of the project. “The Japanese party does not stop or withdraw investment. Only the negotiation process slows down a little and it does not affect anything,” Hau told the online newswire VNExpress.

He added that according to the plan, later this year the parties will sign a general contract, an important step before the project starts. Last month, Hau told the media that the parties were preparing for the project. Once this process is complete, the construction of the plant will be officially started.

On November 6, the international media reported that Idemitsu Kosan Co., Japan’s third-largest oil refinery, announced to postpone investing in the Nghi Son refinery in Thanh Hoa, Vietnam. Along with Kuwait Petroleum International Company, these are the two biggest investors in the project, each own 35.1% ofshares. PetroVietnam holds 25.1% and Mitsui Chemicals Company from Japan holds the remaining 4.7%.

Being revealed in 2008, Nghi Son oil refinery will have a capacity of 200,000 barrels a day and process crude oil transferred from Kuwait. This is an important project for Vietnam’s oil and gas market because at present Vietnam has only one refinery – Dung Quat.

According to a source, the Vietnamese government is pushing the project schedule. Foreign investors are also eager to accelerate the project.

Also on November 6, Idemitsu Kosan Company announced its business results in the second quarter of 2012 (from 04/01/2012 to 30/09/2012,) which are not very satisfactory. Accordingly, its net profit decreased by 94.3% compared to the same period last year, from 42,825 million yen to 2,448 million yen ($536 to $30.6 million) though its net revenue did not significantly reduce, losing only or 0.7 percent, to 2,052 billion yen. This company is currently ranked 199 in the Global 500 List of the Fortune Magazine, with total assets of nearly $32 billion.

Just two days after that, on November 8, Idemitsu Kosan announced to complete the deal to purchase 3% stake in a coal mining company of Indonesia – Baramulti Sukses Sarana. The price of the deal is more than one billion yen ($13 million).

show bar