Monday, 5 July 2010

Vietnam and Japan in talks about oil refinery projects

JX Holdings Inc, one of Japan's largest oil companies, has announced that it will work together with Vietnam's national oil and gas group, PetroVietnam, on two large-scale oil refinery projects, estimated to be worth a combined sum of ¥800 billion.

The two companies intend to set up operations, once they are given the go-ahead from the Vietnamese government. JX Holdings Inc will take part in PetroVietnam's expansion plans for their refinery in Dung Quat, expected to be completed in 2016. The work is estimated to cost in the region of ¥100 billion, and will increase refining capacity to about 170,000 b/d.

JX Holdings Inc will also collaborate with PetroVietnam on construction of another refinery in the southern province of Ba Ria-Vung Tau for operations in 2020. The estimated cost of construction is in the region of ¥700 billion yen, expected capacity of about 200,000 b/d. Once fully operational, the two refineries will produce gasoline and related products for the domestic market, with a possibility of exporting to other parts of Asia.

Earlier this year, chairman of JX Holdings Inc, Shinji Nishio, confirmed company plans to invest in Vietnam, when PetroVietnam's, chairman Dinh La Thang, was on a visit to Tokyo. The two companies are expected to set up a think-tank to discuss bilateral cooperation. The Japanese firm will provide technologies for refining oil products from low-grade crude oil at low cost, and will also environmental technologies.

Source: Vietnam Business News

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