Vung Ro Petroleum Company Limited today awarded a contract to Japan’s JGC Corporation to execute the Front-End-Engineering Design (FEED) of its USD4 billion oil refinery and petrochemical plant in Vietnam. The refinery will have a capacity of 8 million tonnes annually to meet fast-growing demand in the domestic market and wider region. Vung Ro Petroleum – the first fully private foreign petroleum company in Vietnam – expects the refinery be in operation by 2017.
The ceremony was attended by Vietnam’s Deputy Prime Minister Mr. Hoang Trung Hai and several dignitaries from the National Assembly including Vice Chairman Mrs. Nguyen Thị Kim Ngan; Chief of the Committee of Science, Technology and Environment Mr. Phan Xuan Dung; and Chief of the Committee of Economy Mr. Nguyen Van Giau. The Vietnamese Government has indicated that the refinery will be one of the key projects to the country’s future energy security as well as its economic and social development. The Ambassador of Japan to Vietnam HE Mr. Hiroshi Fukada was also in attendance.
JGC, a global engineering company, has undertaken several big projects in Vietnam’s petroleum sector since 1994. The FEED process of Vung Ro’s oil refinery, located in Phu Yen province on Vietnam’s South Central Coast, is expected to be completed by the middle of 2014.
“Vung Ro Petroleum is delighted to announce the signing of this milestone agreement with one of the leading engineering companies in the world. The agreement was made possible by JGC’s professionalism and commitment, together with the diligent and creative work of our international team of engineers and consultants on the basic design and optimization of the plant configuration. We are confident that JGC will execute the FEED process for our oil refinery within the tight timeline required for us to achieve the production of world class petroleum and petrochemical products” said Kirill Korolev, CEO and General Director of Vung Ro Petroleum.
In June 2013 Vung Ro Petroleum was granted an updated investment certificate which saw the refinery’s potential capacity double from an annual output of 4 million tonnes. Vung Ro Petroleum’s project is driving industrial development in the Hoa Tam Industrial Zone, a special economic zone in which the refinery and petrochemical plant will be located. Vung Ro Petroleum is also developing a seaport to facilitate the transportation of its products and to better connect Phu Yen’s industries to world markets. The oil refinery will play a crucial role in raising Vietnam’s profile as an energy exporter and it is estimated that the oil refinery will generate 1,300 jobs.