The contract was signed in Thanh Hoa on January 27 by the Nghi Son Oil Refinery & Petrochemical Ltd. Co. (NSRP) and a consortium of contractors led by Japan’s PGC Corporation.
Other contractors include Chiyoda of Japan, GS E&C of the Republic of Korea, Technip France, and Technip Geoproduction of Malaysia.
The project is invested by the Vietnam National Oil and Gas Group (PVN), Kuwait Petroleum International/Kuwait Petroleum Europe (KPI/KPE), Japan’s Idemitsu Kosan Co. Ltd. (IKC), and Japan’s Mitsui Chemicals Inc.(MIC).
Addressing the signing ceremony, Prime Minister Nguyen Tan Dung noted that the project is of paramount importance to socio-economic development in Thanh Hoa and the country in general.
He asked investors and contractors to fulfil their commitments to ensure the project will be completed on schedule, meeting technical specifications.
He assured that the government will keep a close watch on the progress of the project to ease difficulties and provide necessary assistance.
Thanh Hoa province is working closely with relevant agencies to speed up preparations for the project to commence in July.
The province has established three resettlement areas for 700 households displaced in the first phase.
Land clearance for the oil refinery’s flooring area in Zone B, covering 382 ha, has been completed, and compensating displaced residents is in progress.
Land clearance in the 110ha extended area (zone C) will begin as soon as the NSRP hands over the bidding packages to the EPC contractors.
The company has advanced 100 percent of land rent, estimated at US$80 million, to Thanh Hoa province to cover compensation and land clearance expense in Zone C, including the building of resettlement areas.
Thanh Hoa is committed to completing land clearance within 30 months, moving displaced residents to designated resettlement areas and implementing livelihood recovery programmes.
The Nghi Son oil refinery and petrochemical complex will be built on 400ha in Tinh Gia district’s Nghi Son economic zone at a total cost of nearly US$9 billion.
Crude oil will be imported from Kuwait to feed the oil refinery which has a design capacity of churning out 10 million tonnes a year.
Its major products will be liquefied petroleum gas (LPG), petrol (RON 92, 95), diesel, kerosene/jet fuel, polypropylene, para-xylene, benzene, and sulphur.
Construction work is expected to be completed in the first quarter of 2016, and the refinery will enter commercial operation in 2017.
The project, together with the current Dung Quat oil refinery, will meet 70 percent of domestic demand for oil and petrol.
Source : VOV Online