Oil plant plan for northern province HANOI - Oil monopoly PetroVietnam has proposed building a second refinery for more than US$1 billion despite significant problems with the first project. Several other state agencies were involved in the proposal, according to a PetroVietnam official. "The report was submitted to the government and several locations were mentioned, including Thanh Hoa province," the official said. Thanh Hoa is in the country's north, while the country's oil fields are in the south. "The second refinery would have the same capacity as the first one and would cost roughly more than $1 billion." The opening of the first refinery, to be built by PetroVietnam and Russia's Zarubezhneft and called VietRoss, might be delayed by two years because of technical problems, a senior Russian official said late last year. Vietnamese officials had previously said they expected VietRoss to be operational in 2002 or 2003. It is expected to require investment of $1.3 billion. The Thoi Bao Kinh Te Vietnam newspaper said products from the second refinery would partly serve the petrochemical industry. The proposal had also been submitted to the elite Communist Party politburo, it added. Once operational, the VietRoss refinery should have a daily capacity of 130,000 barrels and will produce refined products for domestic use and regional export. It will be built in central Vietnam, 900 kilometres north of Vietnam's main crude supplies. The location turned away Western partners previously interested in the project. Little construction work has been done so far. Vietnam is a minor oil player by world standards, and exports most of its crude products. Hanoi has previously set a target for oil production of 16 to 17 million tonnes - or 117.3 to 124.6 million barrels - this year, up from 15 million tonnes last year. Reuters - March 2, 2000.