VietNamNet Bridge - After long negotiations, Gazprom Neft (GPN - Russia) has officially proposed to stop the process of negotiation on the transfer of a 49% stake of the Dung Quat oil refinery with the National Oil and Gas Group (Petrovietnam).

Dung Quat Oil Refinery at night.

Information from Petrovietnam said that it means GPN will not buy a stake in the Dung Quat Oil Refinery.

Earlier, PVN said that GPN had sent proposals asking Vietnamese agencies to have incentives and favorable conditions for GPN’s cooperation with Dung Quat Refinery and participation in a project to expand the plant. But the Ministry of Industry and Trade sent a reply, confirming that Vietnam cannot continue giving import tax incentives for Dung Quat after 2018.

However, regarding the policy to equitize Dung Quat oil refinery, GPN has said it will consider buying shares of this factory in the future.

PVN said that in 2015, the Dung Quat oil refinery reached a record profit of VND5,800 billion.

US$1 = VND22,000

S. Tung