Vietnam to brook no delay in construction of first oil refinery
The government has repeated its instruction to state oil giant PetroVietnam to adhere strictly to the construction timetable for the country’s first oil refinery scheduled to be completed in 2009.
In a dispatch Monday Prime Minister Nguyen Tan Dung told the firm to cooperate with France’s Technip Group, the head of an international consortium which won the bid for the Dung Quat refinery’s four major packages, to speed up work and open the refinery in the central Quang Ngai province on February 29.
Technip began work in late 2005.
But PetroVietnam admitted in a recent report to the government that work was proceeding at a “snail’s” pace.
Technip attributed the delay to an inadequate workforce and poor equipment.
Many firms refuse to supply equipment to the group, others had their products rejected for failing to meet technical standards.
Besides the four packages , PM reminded PetroVietnam to keep close eye on works – breakwater, oil exporting port, and administrative and service buildings – ensuring the deadlines of completion.
The Dung Quat saga initially began in 1995, with Vietnam locating the refinery in the Quang Ngai to boost development in the area.
But the project has seen international partner pull outs and repeated delays since that time.
Industry experts call the location of the refinery in central province ‘unfeasible’.
Under the new plan, difficulties again arose, with the government now looking to Technip and its consortium to complete the project.
The PM also reminded PetroVietnam to keep a close eye on the progress of the breakwater, oil export port, and administrative and service buildings to ensure the deadlines were met.
He urged the company to hasten work on other key projects and draft plans for building the country’s third oil refinery.
These include the Ca Mau gas-power-fertilizer complex in the southern province of the same name, Nhon Trach gas-power complex in the southern Dong Nai Province, and an oil refinery complex in Long Son commune in Ba Ria-Vung Tau province.
He instructed the oil firm to cooperate with the Ba Ria – Vung Tau authorities to assess the project and submit it to him for consideration in the third quarter.
The third oil refinery, set to go on stream before 2015, will have an annual capacity of seven million tons of crude oil.
PetroVietnam is asked to work out an estimated investment and measures to arrange financial sources for the project to ensure its feasibility.
Vietnam is Southeast Asia's third-largest crude oil producer with output averaging 350,000 barrels per day. But it still imports most of its oil products in the absence of major refineries
By Dong Ha - Thanh Nien - July 31, 2007.
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