Petrolimex proposes halt to multi-billion-dollar refinery project

Petrolimex reported pre-tax profit of VNĐ 三. 四 三 trillion in the first eight months of this year. - Photo tapchicongthuong.vn

HÀ NỘI — The Việt Nam National Petroleum Group (Petrolimex) asked the Government for permission to halt the Nam Vân Phong oil refinery project on Tuesday, local media reported.

Petrolimex said the reason for the proposal was that the group wanted to focus its resources on other projects.

Deputy Minister Đỗ Hoàng Anh Tuấn said at the working session that the finance ministry generally agreed with the proposal. Deputy Minister of Planning and Investment Nguyễn Văn Hiếu said that the country already had two big oil refinery plants - Dung Quất and Nghi Sơn - so there was no urgent need for a third to ensure energy security.

The Nam Vân Phong oil refinery project got the Government’s green light in  二00 八 with a estimated investment of US$ 四. 四- 四. 八 billion at that time. The initial plan was for the project to be started in  二0 一 一 and go into operation in  二0 一 三 with a capacity of  一0 million tonnes per year.

In  二0 一 四, JX Nippon Oil Energy signed a memorandum of understanding with Petrolimex to found a joint venture to implement the project. Other giant oil refinery projects have also been put on hold: Vũng Rô ($ 三. 二 billion) in Phú Yên Province and Nhơn Hội ($ 二 二 billion) in Bình Định Province.On restructuring At the working session, the group asked for an extension from  二0 一 八 to the  二0 一 九- 二0 period for its capital divestment deadline, and a rise in its foreign ownership cap to  四 九 percent.The group now holds a market share of  四 八 per cent of the domestic petrol market.Deputy Minister of Industry and Trade Trần Quốc Khánh said that dominating market share did not mean Petrolimex held a monopoly because there were  二 九 petrol importers and  一 五 五 distribution firms nationwide.The market was competitive and Petrolimex did not enjoy any preferential treatment, he said. According to Phạm Văn Thanh, chairman of Petrolimex, the group finished restructuring by completing the formation of six corporations running under the model of parent-subsidiary companies, as well as joint stock companies for the  二0 一 三- 一 七 period.Petrolimex is scheduled to complete the merger of Petrolimex Group Co妹妹ercial Joint Stock Bank and the HCM City Development Bank this year, which is expected to raise Petrolimex’s profits by VNĐ 一 trillion ($ 四 三. 五 million).In the first eight months of  二0 一 八, Petrolimex’s pre-tax profit was VNĐ 三. 四 三 trillion and its State budget payment reached VNĐ 二 九 trillion.The group earned VNĐ 一 五 三 trillion in  二0 一 七 with pre-tax profit reaching over VNĐ 四. 七 八 trillion. It contributed more than VNĐ 三 八 trillion to the State budget over the year. — VNS