Gazprom Neft, PetroVietnam ink frame agreement on Dung Quat refinery
HANOI. Nov 12 (Interfax) - Gazprom oil subsidiary Gazprom Neft and Vietnam's state oil company PetroVietnam have signed a frame agreement concerning the Dung Quat oil refinery in Vietnam's Quang Ngai province.
This agreement encompasses investment in the company Binh Son Refining and Petrochemical Company and expanding and modernizing the Dung Quat oil-refining and petrochemicals facility.
The Dung Quat refinery began operations in February 2009. The refinery, which has capacity to process 6.5 million tonnes of oil a year, consumes about 85% of oil produced at a field being developed by Vietsovpetro, a joint venture between Zarubezhneft and PetroVietnam. The other 15% is imported from the Middle East.
Gazprom Neft expects to decide on the extent of investment and volumes of crude oil supplies to the Dung Quat refinery in three-to-six months.
Gazprom Neft CEO Alexander Dyukov told reporters the investment and supply volume were not yet known. "I think both the volumes of crude supplies and investment will be determined in three-to-six months," he said.
"If it benefits the company we'll take part in the project. If not, then not. This is a frame agreement. We continue to conduct talks," he said.
