Petrolimex signs oil refinery deal in Vietnam
The National Petroleum Import-Export Corporation (Petrolimex) will buy 1 mm cm of petroleum products from the Dung
Quat Oil Refinery this year. It was part of an agreement signed by Petrolimex and PetroVietnam, the umbrella company
for Dung Quat.
Under the deal, Dung Quat will provide Petrolimex with 100,000 cm of A95 petrol, 400,000 cm of A92 petrol, 235,000 cm
of 0.05S diesel, 235,000 cm of 0.25S diesel and 30,000 cm of kerosene.
The quality of products made at Dung Quat had been evaluated by the Directorate for Standards, Metrology and Quality,
said Dinh La Thang, PetroVietnam's chairman.
The two sides will assign their member companies to sign contracts directly with one another to distribute gas and
Jet 1 made from Dung Quat. Prices will be negotiated when they sign the deals. It is expected that Dung Quat will
import 5 mm tons of crude oil and churn out 4.75 mm tons of various petrol products this year. The refinery started
operation last February and produced 1.49 mm tons of petrol products last year. The output was small because the
facility was still in its trial period, PetroVietnam said.
Dung Quat has a total investment capital of $ 3 bn, with a maximum annual capacity of 6.5 mm tons of products.
PetroVietnam and Petrolimex are leading companies operating in the fuel sector. PetroVietnam focuses on oil and gas
exploration and exploitation in Viet Nam and overseas. This year, it expects to churn out 15 mm tons of crude oil and
8 bn cm of gas worth an estimated revenue at VND 329 tn ($ 18.3 bn).
Petrolimex specialises in trading petrol products -- the biggest petrol distributor in Viet Nam.
It has more than 1,900 petrol stations nationwide, accounting for 50 % of the total local market share.
