VietNamNet Bridge – The Vietnamese website of the Voice of Russia recently reported that Gazprom Neft, a subsidiary of Gazprom Corporation, has nearly completed the process of purchasing shares of Vietnam’s Dung Quat oil refinery. However, the refinery’s top official says the negotiations are still ongoing.

"The two sides are still in the discussion stage, not reaching a consensus yet," says Mr. Nguyen Hoai Giang, General Director of the Binh Son Oil Refinery Co., Ltd, the operator of Dung Quat Oil Refinery.  Giang adds that the company is also considering expanding and upgrading Dung Quat.

The sale of shares of the Dung Quat oil refinery to foreign investors was proposed by the Vietnam Oil and Gas Group (PVN) in 2008 to expand the factory and secure a long term commitment of raw material provision for the refinery.

The percentage of shares offered for sale is, at a maximum, 49. Last September, according to Giang, GazpromNeft first learned about the cooperation opportunity to upgrade and expand Dung Quat.

Previously, PVN General Director Do Van Hau said the group was compiling a detailed feasibility report on the project to upgrade and expand Dung Quat. Accordingly, GazpromNeft proposed to improve the capacity from 6.5 million tonnes to 9,5-12 million tons a year.

Several companies specializing in the field of petrochemistry in South Korea, Japan and Venezuela have visited Quang Ngai to learn about the expansion plan of Dung Quat oil refinery.

S. Tung