Vietnam: PDVSA Withdraws from Vietnam Project
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Wednesday, 14 October 2009 |
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Venezuela's state oil company PDVSA has canceled plans to invest in
Vietnam's proposed third oil refinery with a capacity of 200,000
barrels a day due to technical and financial reasons, a PetroVietnam
official said.
PDVSA and PetroVietnam agreed in 2006 to build the Long Son
refinery, located in the southern province of Ba Ria Vung Tau, 100
kilometers east of Ho Chi Minh City, said the official with
PetroVietnam's headquarters in Hanoi. "Initially PDVSA wanted to
be involved in the whole process - from supplying crude oil, to
financing the transportation and building the refinery - with a total
investment capital ranging from $6 billion to $7 billion, but it has
changed those plans," said the official, who declined to be named.
There were several deterrents to implementing such a plan, he said,
noting the vast distance in transporting crude oil from Venezuela to
Vietnam. To secure a stable supply of crude oil for the Long Son
refinery, PetroVietnam would have to operate a strong fleet of oil
tankers, which won't be built soon or easy to manage, he added.
According to PetroVietnam General Director Phung Dinh Thuc, since the
two sides couldn't resolve the issues the company is instead seeking
other investors to speed up construction of the refinery.
"PetroVietnam is proactive in talks with Petronas of Malaysia,
International Petroleum Investment Company of the United Arab Emirates
and Trafigura of Singapore," according to local media.
Vietnam operated its first refinery with a capacity of 130,000 barrels
a day of crude in February 2009, and the country is preparing to build
the second refinery with a capacity of 200,000 barrels for operation
from 2013, the PetroVietnam official added.
PetrolWorld 121009
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