MOSCOW (MRC) -- PetroVietnam (PVN) has bought 11% stakes in the National Chemicals Group (Vinachem) in the Long Son Petrochemicals Complex project on Nov. 17, 2014, said Hydrocarbonprocessing.
According to both the parties, the capital transfer, which was included in the government's restructuring plan national organisations, was approved by the Prime Minister, Nguyen Tan Dung, in August.
The transfer of stake aims to use the investment to speed up the USD4.5 million worth Ba Ria-Vung Tau-based Long Son Petrochemicals project.
Before the transfer, PVN contributed 18% of the project capital and Vinachem contributed 11%. Thailand and Qatar's investment accounted for the rest 71%. Now PVN contributes 29% of the project capital.
The 400 ha petrochemical complex, considered the biggest of its kind in Vietnam, will be located in the Long Son industrial zone near the Long Son oil refinery. The project is in the preparation stage that includes, building of infrastructure and selection of contractors.
It is designed to produce 2.7 million tonnes of polyethylene and polypropylene, the raw materials required for the production of polyvinyl chloride (PVC) and other kinds of chemical products, to serve the increasing demand from the domestic petrochemical industry.
According to PVN, the local industries require up to USD2 billion worth of high-quality plastic resins annually.
The project is expected to complete in the second quarter of 2019.
As MRC wrote before, Rosneft and PetroVietnam discussed supplying Russian oil to PetroVietnam’s Dung Quat refinery and potential cooperation on modernizing the plant. Rosneft is in talks to buy Chevron’s stake in gas fields off southern Vietnam for about USD200 million, PetroVietnam CEO Do Van Hau told Bloomberg in an interview on Aug 22.
PetroVietnam, Japan’s Mitsui & Co. and Thailand’s PTT Exploration & Production are partners in the Chevron project and have the first option on any stake up for sale, Hau said.
MRC