Nghi Son oil refinery and petrochemical project to close EPC contract on April 8

Nghi Son oil refinery and petrochemical project will close the engineering, procurement and construction (EPC) contracts on April 8 if the selected contractor group agrees to reduce $50 million for the EPC bidding package worth $5.3 billion, Dinh La Thang, chair of Vietnam National Oil and Gas Group (PetroVietnam‐PVN)’s membership board.

Thang said that although the Nghi Son oil refinery project initially selected the group of bidders to join the EPC contract, however, the negotiation on the huge valuable EPC contract like Nghi Son oil refinery and petrochemical project is not easy.

Therefore, the negotiation duration for the EPC contract has lasted more than expected.

If the selected group of contractors does not agree a discount of $50 million for the EPC contract, maybe the project’s investor namely Nghi Son Refinery and Petrochemical Co., Ltd (NSRP) will have to choose another contractor. If everything goes smoothly, the Nghi Son refinery and petrochemical project will be kicked off in Q2 this year.

The Nghi Son refinery and petrochemical project located in Nghi Son Economic Zone (in the central northern province of Thanh Hoa) is a joint venture among the state‐run PetroVietnam with the holding of 25.1 percent stake, the state‐run Kuwait International Petroleum Group (KPI) with a 35.1 percent stake, Japan‐based Idemitsu Kosan Petroleum Group (IKC) and Japanese Mitsui Chemical Group (MCI) with a combined 39.8 percent stake.

With a capacity of refining 200,000 barrels of crude oil per day or 10 million tonnes per annum, 1.5 fold against the capacity of Dung Quat oil refinery and marking the Vietnam’s biggest oil refinery and petrochemical complex. Once in operational by 2014, the complex is expected to produce annually 2.3 million tonnes of gasoline, 3.7 million tonnes of diesel, 400,000 tonnes of polypropylene, 600,000 tonnes of jet fuels and nearly one million tonnes of other chemicals.

The complex of Dung Quat oil refinery and Nghi Son oil refinery and petrochemical are expected to meet about 50 percent of the domestic demand. – VOV

Tags: Nghi Son oil refinery

Posted by VBN on Apr 7 2011. Filed under Oil-Gas & Petroleum. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry