Negotiations under which PetroVietnam will sell a 49 percent stake inthe Dung Quat refinery, the country's sole oil processing facility, tothe Russian oil company Gazprom Neft are expected to be soon concluded.
This was reported by the Russia-based Interfax-ANI news agency.
"Atthe current time, we don't see any obstacles that can destroy thispotential agreement," Gazprom Neft's Chairman Alexander Dyukov wasquoted as saying.
Dyukov said Vietnam's economy was booming andits demand to import oil products was likely to increase. The oilrefinery's capacity needed to be upgraded to make more profit.
Earlier,Gazprom Neft said it now had exclusive rights to negotiate withPetroVietnam on acquiring 49 percent of shares, the highest foreignownership rate in a Vietnamese company, in the refinery operator's BinhSon Refining and Petrochemical Co. However, no value or timing was givenfor the purchase.
This negotiation is in line with an agreementsigned between the two countries during Russian President VladimirPutin's visit to Vietnam in 2013. Following this, Gazprom Neft, the oilarm of top global gas producer Gazprom, may buy a 49 percent share inDung Quat refinery.
The two countries also signed atentative intergovernmental agreement under which, after the sharepurchase, the Russian company is responsible for supplying oil to DungQuat refinery, from 3 million tonnes in 2015, 3.6 million tonnes in 2016to 4.8 million tonnes in 2017 - and no lower than 6 million tonnes from2018 onwards.
According to Gazprom Neft'sassessment, the refinery upgrade may cost 1-1.5 billion USD. This wouldraise capacity from the current 6.5 million tonnes per year to 10-12million tonnes.
The refinery is expected to produce8.5 million tonnes of crude oil a year (171,000 barrels per day) once aprojected upgrade is finished by 2022.
On thestate-level visit by Russian Prime Minister Dmitry Medvedev to Hanoiearly this week, the two countries also agreed to step up cooperation inexpanding oil and gas exploration and production in Vietnam.
Early this week, PetroVietnam and Gazprom Neft signed a tentativeagreement to collaborate on exploring and developing oil and gasresources beneath the Pechora Sea in the Russian Arctic. The signing waswitnessed by the two countries’ Prime Ministers.
By October,the two sides will unveil the basic terms of partnership, as well asrelease a list of priority oil and gas fields.
Vietnam and Russia have long had close energy cooperation, beginningwith the construction of a hydropower plant in the 1980s and then oiland gas joint venture Vietsovpetro.-VNA
This was reported by the Russia-based Interfax-ANI news agency.
"Atthe current time, we don't see any obstacles that can destroy thispotential agreement," Gazprom Neft's Chairman Alexander Dyukov wasquoted as saying.
Dyukov said Vietnam's economy was booming andits demand to import oil products was likely to increase. The oilrefinery's capacity needed to be upgraded to make more profit.
Earlier,Gazprom Neft said it now had exclusive rights to negotiate withPetroVietnam on acquiring 49 percent of shares, the highest foreignownership rate in a Vietnamese company, in the refinery operator's BinhSon Refining and Petrochemical Co. However, no value or timing was givenfor the purchase.
This negotiation is in line with an agreementsigned between the two countries during Russian President VladimirPutin's visit to Vietnam in 2013. Following this, Gazprom Neft, the oilarm of top global gas producer Gazprom, may buy a 49 percent share inDung Quat refinery.
The two countries also signed atentative intergovernmental agreement under which, after the sharepurchase, the Russian company is responsible for supplying oil to DungQuat refinery, from 3 million tonnes in 2015, 3.6 million tonnes in 2016to 4.8 million tonnes in 2017 - and no lower than 6 million tonnes from2018 onwards.
According to Gazprom Neft'sassessment, the refinery upgrade may cost 1-1.5 billion USD. This wouldraise capacity from the current 6.5 million tonnes per year to 10-12million tonnes.
The refinery is expected to produce8.5 million tonnes of crude oil a year (171,000 barrels per day) once aprojected upgrade is finished by 2022.
On thestate-level visit by Russian Prime Minister Dmitry Medvedev to Hanoiearly this week, the two countries also agreed to step up cooperation inexpanding oil and gas exploration and production in Vietnam.
Early this week, PetroVietnam and Gazprom Neft signed a tentativeagreement to collaborate on exploring and developing oil and gasresources beneath the Pechora Sea in the Russian Arctic. The signing waswitnessed by the two countries’ Prime Ministers.
By October,the two sides will unveil the basic terms of partnership, as well asrelease a list of priority oil and gas fields.
Vietnam and Russia have long had close energy cooperation, beginningwith the construction of a hydropower plant in the 1980s and then oiland gas joint venture Vietsovpetro.-VNA
