Hanoi, 9 March 2018
Vung Ro Petroleum Co. Ltd wishes to correct the information contained in recent news reports on its current project situation. The Company was granted an Investment Certificate by the Phu Yen Province Government, following approval by the Vietnamese Government, for the development of an 8 million-ton per annum refinery and petrochemical complex.
Over the past year, Vung Ro Petroleum Co. Ltd has comprehensively reviewed and adjusted its development plan to respond to changing market conditions as well as new long term perspectives influenced by environmental regulations and fast progress in the use of alternative sources of energy in transport.
The Company has modified its crude supply strategy, its refinery configuration, and its products to better address future market requirements in Vietnam and in the region. For instance, Vung Ro Petroleum Co. Ltd will produce less diesel for cars, and instead will dedicate part of its refining capacity to the production of low sulphur marine fuels and high quality bitumen.
The Company has also scheduled its development in several phases to accelerate the start of construction and operation of the project. The first phase includes a 1 million-ton per annum capacity crude oil refinery unit, as well as port and storage infrastructure.
The objective of the Company with these measures has been to significantly improve the investment profile and economics of the project to suit its shareholders’ aspirations.
In the course of constructive discussions, Vung Ro Petroleum Co. Ltd has secured the support from the Phu Yen Province Government for a new project approval strategy. Accordingly, the Company has returned its existing Investment Certificate (Ref. 361 043 000 035) and has applied for a new Investment Certificate for its first phase 1 million-ton per annum unit with the relevant authorities.
The Company will maintain its continuing working relationship with the Phu Yen Province Government and with its commercial relations. Vung Ro Petroleum Co. Ltd holds the benefit of the important development work it has carried out to date, including front-end engineering design and licenses, commercial and financial development, and project site preparation.
Company management is confident that Vung Ro Petroleum Co. Ltd will achieve a shared objective of successful and considerate industrial and trade development for its public and private stakeholders.
Thanh Nguyen, Assistant General Director on Government Relations, Vung Ro Petroleum Co. Ltd
Tatiana Andreeva, Project Coordinator, Vung Ro Petroleum Co. Ltd
Danish global machinery equipment maker DenimoTech and Vung Ro Petroleum Company Limited on Thursday signed an agreement to build a high-tech bitumen plant in the central coastal province of Phu Yen. The construction of the plant will be divided into two phases. The first will be implemented in a year, and the second will begin in the middle of the year and last for 26-28 months. During the first phase, the plant will import high quality bituminous binders from the world’s leading manufacturers and process them into advanced construction materials for both the Vietnamese market and exports to neighbouring countries. The plant has been designed to have a storage capacity of 12,000 metric tonnes (MT) with a second phase upgrade to 30,000 MT. It is expected to be a top-notch environmentally-friendly bitumen-emulsion and polymer-modified bitumen plant. It will also be a state-of-the-art packing facility for exports of hi-tech bituminous products to regional markets. It will have its own port facility. The plant is part of Vung Ro Petroleum’s attempt to produce its own high-quality bituminous binders compliant with Vietnamese Standards, American Superpave Performance Grade Standards and other standards required by customers in the region. Kirill Korolev, CEO of Vung Ro Petroleum, believes that the project will contribute significantly to Viet Nam’s infrastructure development. “The road, airport and port infrastructure of a country are barometres for its advancement, wealth and prosperity. We are proud to contribute to this development. We are selecting the world’s best technology providers to bring the best materials and science to the Vietnamese market,” Kirill said. Vung Ro Petroleum’s CEO said he was not authorised to disclose the full amount of the investment, but said it was above US$500 million. “Together with our partners, international vendors and some of the best scientists from Denmark, we will deliver a cutting-edge facility for Vung Ro Petroleum and help solve the engineering problems of Vietnamese construction and industrial sectors,” said Bernd Schmidt, chairman of DeminoTech. — VNS
Vung Ro Petroleum and Genoil reached an agreement to enter into a strategic partnership to work on the Refinery Project. Genoil is a provider of world-leading hydroconversion fixed bed technology for upstream and downstream oil and gas industry. The central pillar of Vung Ro Petroleum and Genoil cooperation is the GHU® Hydroconversion upgrader. The upgrader can be utilized in refineries to increase light oil production by 15‐20 % (volume output) and to desulfurize the oil over 90% to help refiners to comply with environmental regulations. This patented and unmatched technology is the best solution for the Phase 2 refinery development as it allows the VRP Refinery to be even more competitive on the global market, as well as meet all the IMO’s demands and regulations that will have been imposed by 2020. Genoil is a great partner and this cooperation exemplifies our dedication to successfully develop the Refinery and it reflects our desire to work with the companies that share our vision,” said Kirill Korolev, CEO of Vung Ro Petroleum. VRP and Genoil are looking forward to strengthening their cooperation in business and project development. Moreover, the two companies have agreed on including future aspects of desulphurization processes with reference to the future Refinery expansion.
Vung Ro Petroleum is glad to announce that all the procedures regarding company’s restructuring have recently been finished. The company went through a very time and effort-consuming period in order to renew its strategy, development plans and to make sure that VRP’s refinery project will be carried out. Kirill Korolev, VRP CEO, says: “For some time VRP has been challenged to adapt in the unstable circumstances that hit the oil market, but our strategy with an in-depth market analysis of our project enables us to immediately take action and move with speed in terms of project execution”. VRP’s team of international specialists has already agreed on the renewed concept, design, and approach. The new management team has already expressed their support and commitment to the renewed strategy and willingness in doing their best to achieve all the goals set up.