Binh Dinh Province has not received a request for an investment certificate for an oil refinery complex worth US$22 billion in Nhon Hoi Economic Zone.

A source from the Nhon Hoi Economic Zone Authority said Thailand’s PTT Public Company Limited (PTT) and Saudi Arabian Oil Company (Saudi Aramco) have not submitted the long-awaited project to authorities for approval.

The source said the investors are still pursuing the Nhon Hoi oil refinery project and looking for a Vietnamese partner to take part in the joint venture as earlier mentioned by PTT.

The Thai firm proposed partnering with Vietnam National Petroleum Group (Petrolimex) to develop the project at a meeting with Prime Minister Nguyen Tan Dung in Bangkok on the sidelines of the 5th Greater Mekong Subregion Summit late last year.

At the meeting, the Government leader threw support behind PTT’s proposal but said whether Petrolimex could contribute capital to the multi-billion-dollar project is mainly a matter between PTT and the local enterprise.

The Nhon Hoi Economic Zone Authority said earlier that whether or not a local partner would join is not a condition on PTT’s part. However, Saudi Aramco insisted on having a Vietnamese enterprise participating in the project. This is why the investors have not applied for an investment certificate.

The source said the investors and local authorities are calling for domestic enterprises to invest in the Nhon Hoi oil refinery complex, which is also known as Victory Project.

Earlier PTT hoped a Vietnamese enterprise would contribute 20% or some US$4.4 billion of the project’s registered capital. However, Vietnam’s regulations require a State-owned enterprise like Petrolimex to win the National Assembly’s approval if it wants to contribute more than VND11 trillion (less than US$500 million) to a project.

The Victory Project is planned to cover 1,400 hectares in the Nhon Hoi Economic Zone and designed to refine around 20 million tons of crude oil a year.

The investors are expected to increase the designed capacity to 30 million tons and total investment costs to some US$30 billion after 2021, and complete the project in the 2021-2025 period.

Last year, the Government gave the nod to the implementation of the oil refinery complex and agreed to add it to the master plan for development of the oil and gas industry in Vietnam.

The Prime Minister assigned Binh Dinh authorities to award an investment certificate for the project and allocate land to it in compliance with the existing regulations. The provincial government was told to attend to technology, equipment, environmental assessments and product quality of the project.