PVN steps up project progress

A ship loads oil at PetroVietnam's Dung Quat Refinery. — VNA/VNS Photo Thanh Long

A ship loads oil at PetroVietnam's Dung Quat Refinery. — VNA/VNS Photo Thanh Long

HA NOI (VNS)— PetroVietnam will speed up procedures and arrange capital needed to implement its on-going projects on schedule during the next three months, said PetroVietnam’s chairman Phung Dinh Thuc at a press conference in Ha Noi yesterday.

The projects on the list include the Nghi Son petrochemical refinery complex, two thermal power plants (Vung Ang 1 and Thai Binh 2) and two coal-fired power plants (Long Phu 1 and Song Hau 1).

An engineering, procurement and construction contract to build the US$9 billion Nghi Son Refinery was signed in central Thanh Hoa Province on January 27. Construction of the refinery is expected to start in July this year, with the refinery put into commercial operation in 2017.

This is a key oil and gas project for the country. Together with the Dung Quat refinery, the two plants are expected to meet 70 per cent of Viet Nam’s demand for petrol and oil and help ensure national energy security.

The group expects to sign 4-5 new oil contracts this quarter and start exploiting four oil mines – three in the country and one overseas. Two bio-fuel projects in Quang Ngai and Binh Phuoc will also be completed and run production trials this quarter.

Thuc said production of bio-fuels faced many difficulties due to low demand, but added that he expects the sector will improve from 2015 when a regulation promoting bio-fuels will take effect nationwide.

PetroVietnam produced 26,000 metric tonnes of bio-fuels last year but half of the figure was exported due to lack of domestic demand.

“Export prices for bio-fuels were low, at around $650 per tonne and for most of the time the export price was lower than the production cost,” Thuc said.

In the second quarter, PetroVietnam plans to raise its oil and gas production to 6.43 million tonnes of oil equivalent, including 4.03 million tonnes are crude oil and 2.4 billion cubic metres of gas.

Ending June, the group expects to earn a revenue of VND338 trillion ($16.1 billion) and contribute as much as VND76.3 trillion ($3.6 billion) to the State budget.

In the first quarter, the whole group earned a total revenue of VND178.7 trillion, up 3 per cent over the same period last year and up 17.4 per cent compared to its targets.

Contributions to the State budget reached VND43 trillion, equivalent to 29 per cent of its yearly plan and up 5.6 per cent over the first quarter of 2012. — VNS

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