Soco International Plc of the UK announced that it will delay its oil exploitation plan at Te Giac Trang (White Rhino) field until mid 2011, one year behind schedule.
The Financial Times on March 10 quoted Ed Story, Soco’s president and CEO, saying his company has also decided to cancel its plan for exploration at Te Giac Den (Black Rhino) field.
Back in June 2008, Soco said that it would drill a new well in this field within the next 6-9 months. However, the company has now confirmed that it will not be undertaken before the first half of next year.
Analysts say Soco’s assets remain attractive to a potential buyer identified as Sinochem of China which bought Soco’s assets in Yemen worth US$465 million last year.
However, Ed Story said talks to sell assets had taken place only "sporadically", and there was "nothing definitive to discuss".
Saturday, March 14, 2009
UK company delays oil projects in Vietnam
Tuesday, January 13, 2009
PetroVietnam develops clean energy project
The Vietnam National Oil and Gas Group (PetroVietnam), in cooperation with China ’s XinAo Group, is considering a 700-million-USD project to produce clean energy in Thanh Hoa province’s Nghi Son district.
The project will include a storage system and port for receiving liquefied natural gas (LNG) and a distribution system with an annual capacity of 3 million tonnes, which will be increased to 6 million tonnes in the future.
The project will also produce dymethyl ether (DME) that will be mixed with liquefied petroleum gas (LPG) to provide lower-cost LPG.
The Chinese partner will contribute 55 percent of the project which will have initial total capital of 30 million USD.
Thursday, January 1, 2009
Up to 49% of oil refinery stocks to be sold
The Vietnam National Oil and Gas Group (PetroVietnam) announced, at a press conference on Tuesday, that it will sell up to 49% of its shares in the Dung Quat Oil Refinery to foreign partners.
PetroVietnam said stock sales will be conducted after the construction of the oil refinery is completed and its value is re-defined, based on the principle of giving priority to foreign investors that are ready and willing to supply crude oil to those plants on a long-term basis.
PetroVietnam said next week, PVN and its partner, BP, will sign a contract under which BP will provide combined oil to the Dung Quat Oil Refinery to replace at least 50% of the volume of crude oil supplied by the White Tiger oil field. However, PetroVietnam will define the specific volume of the alternative combined oil based on the prices and quality of this product.
Currently, the price for White Tiger oil field’s crude oil is more expensive than other kinds of crude oil. On the other hand, the crude oil output from this oil field tends to fall, so the use of alternative combined oil is expected to be more economical.
Dung Quat is the country’s first oil refinery, currently being built in the central province of Quang Ngai, and scheduled for completion in February 2009. Besides Dung Quat, PetroVietnam has plans to build two other oil refineries.
One of these two, with an estimated output capacity of 200,000 barrels a day and investment capital of $6 billion, is to be built in the central province of Thanh Hoa, in a joint venture with the Kuwait international oil and gas group and the Idemitsu Kosan group of Japan.
The other, also with a production capacity of 200,000 barrels a day, is scheduled to be built in the southern region, the country’s largest consumer centre. The project is still at the discussion stage with foreign partners, including the Venezuelan National Oil and Gas Group.
Despite being the third-largest producer of crude oil in Southeast Asia, with an average output of 300,000 barrels a day, Vietnam still has to import petroleum due to a lack of oil refineries. According to PetroVietnam, the country will need to buy approximately 26.5 tons of crude oil to supply the three refineries when they are operational.
Once operational, these three oil refineries will help the country to reduce its import and trade deficit.
Pha Rung Shipyard builds oil tanker
The Pha Rung Shipyard , a subsidiary of the Vietnam Shipbuilding Industry Corporation (Vinashin), handed over a chemical-oil tanker of 6,500 DWT to Fortune Marine of the Republic of Korea on Dec. 30.
The 110m-long and 18.2m-wide tanker is the fifth of the kind that Pha Rung has built for foreign partners.
The oil-chemical tanker with the speed of 13 knots was designed by Asia Ship Design and Consultants Co. , Ltd (ASDEC). It has Korea Register Class for unrestricted zone of operation.
Pha Rung Shipyard is also working on one more chemical-oil tanker of 13,000 DWT in line with its strategy to build specialised ships for both domestic use and export.
SCIC, PetroVietnam boost comprehensive cooperation
The State Capital Investment Corp. (SCIC) and the Vietnam Oil and Gas Group (PetroVienam) signed an agreement on comprehensive cooperation in Hanoi on December 30.
Under the agreement, the two sides will jointly own at least 51 percent of investment capital in oil and gas projects.
SCIC will cooperate with PetroVietnam in exploring and exploiting oil and gas abroad. It will be responsible for seeking strategic partners and potential domestic and foreign financial institutions for the implementation of the projects.
The projects that the two sides will jointly implement include the Dung Quat, Nghi Son and Long Son Oil Refinery Plants and the Ca Mau Fertiliser Plant.
Tuesday, December 23, 2008
Vietnam to have made-in-Vietnam oil and petrol products
VietNamNet Bridge – The Dung Quat Oil Refinery is expected to be putting out the first made-in-Vietnam commercial oil flow in two months, according to Deputy General Director of Dung Quat Oil Refinery Dinh Van Ngoc.
Ngoc said that the oil refinery will become officially operational on February 25, 2009. To date, 98.5% of works have been completed, allowing the oil refinery to be put into operation on schedule.
What kinds of products will be launched onto the market from the Dung Quat oil refinery?
The oil refinery has been designed to churn out nine products, including propylene, 150,000 tonnes a year. We have signed a contract with Marubeni on Japan’s consumption of the product until the construction of the polypropylene (PP) workshop at Dung Quat is finished, expected at the end of October 2010. When the workshop becomes operational, propylene will be sent to the PP workshop and made into plastic beads to serve local industries.
The other products are LPG, liquidised gas, with the capacity of 300,000 tonnes per annum, petrol of different types, A90, A92 and A95, 1.9mil tonnes, fuel for jet engines, and petrol for aircrafts (jet A1), 360,000 tonnes at maximum, diesel, 3mil tonnes per annum, and FO, 400,000 tonnes a year.
Dung Quat oil refinery is scheduled to run at 60-65% designed capacity from February to June 2009 and 70% of designed capacity from June-August. As of August 2009, it will run at 100% capacity. It is expected that in 2009, the oil refinery will consume approximately 4mil tonnes of crude oil, producing 3.6mil tonnes of products. As of 2010, it will meet 30% of the country’s demand.
Does PetroVietnam plan to expand the oil refinery?
PetroVietnam is considering upgrading the capacity of the oil refinery, and the optimal solution is to increase the capacity of the existing facilities at Dung Quat economic zone. This solution would save investment capital, requiring the fewest adjustments and the shortest time. When we have a big oil refinery, a 5% or 10% increase in capacity will be significant. We don’t have to make heavy investment in equipment, but can raise capacity and gain high economic efficiency.
The second solution is to install a second production line, taking full advantage of labour resources, peripheral support, infrastructure and deep water seaports.
Does this mean that Vietnamese people will have cheap petrol and oil products in a short time?
Dung Quat oil refinery will operate under the management of the government and PetroVietnam. Petrol and oil prices will depend on the government’s policies regarding the stabilisation of the market and sustainable development. However, I can say that the sale prices of products from Dung Quat oil refineries will be competitive and follow market laws.
Saturday, December 20, 2008
Petrolimex gets nod for another refinery
The government has agreed in principle to allow the Vietnam National Petroleum Corporation (Petrolimex) to build a new oil refinery in central Khanh Hoa Province, a company official told Thanh Nien Daily Friday.
The refinery, with a designed capacity of processing 6-7 million tons of crude oil a year, will have a total investment of about US$5 billion, said Petrolimex Vice General Director Vuong Thai Dung. “We are preparing a feasibility study for the project,” he said.
Petrolimex is considering inviting foreign partners to cooperate in implementing the project, he said. “Besides contributing capital to the project, they will have to arrange a stable supply of crude oil for it.”
Covering 600 hectares in Khanh Hoa, the refinery, which is scheduled to start operations in 2013, will turn out products for both local consumption and export, he said.
“However, we will prioritize using the refinery’s products to serve our country’s socio economic development, local consumption, and national security,” Dung said.
Vietnam, Southeast Asia’s third-largest crude oil producer, plans to build seven refinery projects with a combined capacity of 60-70 million tons of crude oil a year.
The Nghi Son refinery in central Thanh Hoa Province is under construction, while the $2.5 billion Dung Quat plant in Quang Ngai Province capable of processing 6.5 million tons a year is scheduled to start operations next February. The rest of the projects are either in the planning stage or have been deferred.
The country imported over 11.8 million tons of petroleum products worth $10.6 billion in the first 11 months of this year, up 3.1 percent in volume and 58.3 percent in value over the same period last year, according to the General Statistics Office.
Friday, December 19, 2008
Venezuela approves petroleum joint venture with Vietnam
The Venezuelan government has ratified the establishment a joint venture between the Venezuelan Petroleum Corporation (CVP), a branch of Petroleos de Venezuela S.A (PDVSA), and the National Oil and Gas Group of Vietnam (PetroVietnam) in seeking and exploiting petroleum in this South American country.
Following a decision issued in an official gazette on December 15, the joint venture will drill for and exploit crude oil on bloc Junin covering 2,247 km2, in the state of Anzoategui.
With CVP holding 60% of stake and PetroVietnam, the remainder, the joint venture will be in operation for 25 years.
Government Mulls $4.8 Billion Oil Refinery in Khanh Hoa
The Vietnamese government has agreed in principle to allow the Viet Nam National Petroleum Corp., or Petrolimex, to invest $4.4 billion-$4.8 billion in a new oil refinery, the government said Thursday.
Deputy Prime Minister Hoang Trung Hai Thursday assigned Petrolimex to prepare a feasibility study into the project, the government said on its Web site.
The refinery, with a designed processing capacity of 200,000 barrels of crude oil a day, is expected to cover 600 hectares in Khanh Hoa province, 1,200 kilometers south of Hanoi, it said.
The refinery is scheduled to start operations by 2013, the government said.
The government said it would hold a stake of less than 30% in the refinery. (Dow Jones)
Countdown for first oil refinery
More than 10,000 engineers and workers on the construction site of the Dung Quat Oil Refinery are hard at work for the first flow of commercial petrol products in two months’ time.
Visitors to the Dung Quat Economic Zone in the central province of Quang Ngai during these days are filled with pride at the sight of a modern oil refinery – the first of its kind in Vietnam – taking shape.
The refinery has just received 80,000 tonnes of crude oil from Bach Ho (White Tiger) oilfield and imported more than 52,000 tonnes of diesel oil for a test run.
The plant is in its final stage, with 98 percent of the work completed. Several components such as boilers and cooling towers are undergoing a trial period. Engineers are also testing the oil pipeline system, which is thousands of metres long, to ensure its safety.
Currently, more than 100 domestic and international contractors and more than 10,000 engineers and workers are working on the site. About 300 Vietnamese engineers are testing control equipment and accessories together with international contractors in the hope that all the equipment will be ready for use when the refinery is up and running.
The project management unit is putting the final touches on a floating port for petroleum export and a power generator, and will import liquefied gas to run the refinery.
The refinery is scheduled to churn out the first flow of commercial petrol products on February 25. Its major products are diesel, petrol, kerosene, aircraft fuel and liquefied petroleum gas (LPG). With a design capacity of 6.5 million tonnes a year, it is expected to meet one third of the country’s fuel demand.
Saturday, December 13, 2008
First oil refinery to sell all products
VietNamNet Bridge - The PetroVietnam Corporation (PV Oil) has announced that it is building oil storage facilities and a distribution network to enable the sale of 3.2 million tonnes of products from the Dung Quat oil refinery.
The nation’s first oil refinery in the central province of Quang Ngai is scheduled to commence operations by the end of next year.
PV Oil said that its storage system will include oil tanks with total volume exceeding 780,000 cu.m., as well as an international transit and reserve warehouse with a capacity of 1.8 million cu.m.
Its development plan will enable the corporation to store 1.2 million cu. m. of all grades of oil by 2009, fully meeting the Dung Quat refinery’s storage needs.
The business is also expanding its nationwide distribution network to 2,825 sale points by 2009 and 3,620 sale points by 2010.
It is taking steps to increase its overseas market share by opening branches and representative offices in Cambodia , Laos , Thailand , Singapore , Venezuela , the United Arab Emirates and the Great Britain .
The corporation has signed contracts with the Vietnam Air Petrol Company (Vinapco) regarding the sale of all aeroplane fuel produced by the Dung Quat refinery.
Monday, December 8, 2008
Vung Ro Oil Refinery plant plans postponed
VietNamNet Bridge – Construction of the Vung Ro Oil Refinery will be postponed, said Pham Ngoc Chi, Phu Yen Province People's Committee Chairman, at a recent provincial meeting.
Construction now would start at the beginning of 2009 instead of the end of this year as planned earlier, he said.
The postponement stems from a delay in the land clearance process. The province has yet to complete construction of the Phu Lac resettlement zone and the Hoa Tam New Administration Centre in order to provide housing for 5,100 displaced people.
Phu Yen People's Committee granted the investment licence for the Vung Ro Oil Refinery in November last year.
The US$1.7 billion project, with an investment capital of 51 per cent ownership by the British Technostar Management Ltd Co and 49 per cent by the Russian Telloil, will become the first wholly foreign-owned oil refinery to be built in the country.
Vung Ro Oil Refinery, the country's fourth, is expected to supply the domestic market with four million tonnes of petroleum products annually.
The project will be developed on a 200 ha inland area and 210 ha on the water's surface near Vung Ro Seaport in Tuy Hoa District.
Investors have also found stable supply of crude oil from the Middle East to increase product output.
The country's three other oil refineries are located in Quan Ngai, Thanh Hoa and Ba Ria-Vung Tau provinces.
When all four oil refineries are fully functional, their combined production output will total 20 million tonnes of petroleum per year through 2012.
Thursday, December 4, 2008
Total buys up Gas Saigon
Wednesday, December 3, 2008
Vietsovpetro fulfills yearly plan ahead of schedule
The Vietnam-Russia Petroleum Joint Venture (Vietsovpetro) said it has fulfilled its 2008 exploitation plan one month ahead of schedule, with a total output of 7.1 million tonnes of crude oil.
Vietsovpetro General Director Tran Le Dong said on December 2 that the JV plans to tap 600,000 more tonnes of oil in the remaining days of the year.
By November 30, Vietsovpetro had raked in over 6 billion USD from crude oil export, an 82.6 percent increase over its plan.
It also fulfilled its yearly turnover target in early July and finished an annual plan of bringing ashore gas from the Bach Ho oilfield in November.
Saturday, November 29, 2008
Vietnam digs into South American markets
Brazil and Argentina are the two targets of a trade delegation visiting South America from Nov. 17 - 26, led by Deputy Minister of Industry and Trade Do Huu Hao.
Hao was accompanied by executives representing several national industrial giants, such as the Vietnam National Oil and Gas Group (PetroVietnam), the Vietnam Electricity Group and the Vietnam Coal - Mineral Industries Group.
In Brazil , the delegation met with Deputy Foreign Minister Samuel Pinheiro Guimaraes Neto, who is also Chairman of the Brazilian arm of the Vietnam-Brazil Joint Committee, to consider the timing of the committee’s first meeting. Their discussions focused on projects of great mutual interest to the two nations.
A number of Vietnamese businesspeople also attended an international conference on bio-energy, and business forums in Goinas and Sao Paulo .
PetroVietnam held a working session with the Brazilian state-run oil and gas group Petrobras, during which they discussed measures to deploy a protocol on the production and use of ethanol alcohol.
In Argentina , they conducted working sessions with the Foreign Ministry, the Ministry of Economics, the ENARSA Energy Company and the Metallurgy Engineering Group IMPSA, where host and guest reached a consensus on restoring the Inter-Governmental Committee sometime in the near future.
Numerous Vietnamese businesspeople were also in attendance at a business forum in the Argentine capital of Buenos Aires .
Brazil and Argentina represent two promising South American markets for Vietnam .
Regarding its trade links with Brazil , bilateral trade reached a record high of 323.3 million USD during 2007. This record, however was immediately broken by the amount recorded during the first ten months of this year – almost 468 million USD. So far this year, Vietnam has exported more than 172 million USD of goods to Brazil , representing a year-on-year increase of 98 percent. Its imports from the largest Latin American economy reached 295.7 million USD, or 73 percent more than the corresponding period last year.
Two-way trade between Vietnam and Argentina reached an all-time high of 387.6 million USD during 2007, and have fetched 350.1 million USD during the first 10 months of this year.
So far this year, Vietnam has earned 56.8 million USD from exports to the South American market, more than double that achieved in the same period last year. Its imports from Argentina , although falling by 4.5 percent year-on-year, remain high at 293.3 million USD, almost five times more than export.
Friday, November 28, 2008
Oil and gas corporation to exploit oil in Venezuela
Hanoi (VNA) - PetroVietnam Exploitation and Production Corporation (PVEP), a subsidiary of the Vietnam National Oil and Gas Group (PetroVietnam), will establish a joint venture with a Venezuelan firm to exploit and refine heavy oil in Venezuela .
On Nov. 27, PVEP signed a memorandum of understanding with the Venezuelan Petroleum Corporation (CVP), a member of the Venezuela Oil and Gas Group (PDVSA), on the establishment of a joint venture and contract to exploit and refine heavy oil at Lot Junin 2 in the Orinoco heavy oil belt in Venezuela .
One operational, the project will turn out up to 200,000 barrels a day, equivalent to 10 million tonnes of oil per year.
Heavy crude oil pumped up by the JV will be refined into light oil by its plant.
The JV contract will come into effect immediately after it is ratified by the Venezuelan parliament.-Enditem
PVTrans gets loan to buy oil tankers
PetroVietnam Transportation Corporation (PVTrans) on Nov. 26 signed a 175-million USD term loan facility agreement with a group of foreign banks led by Citigroup.
Other lenders include Calyon Corporate and Investment Bank, Fortis Bank and Societe Generale.
The proceeds will be used to finance the purchase of three oil tankers with capacities ranging between 80,000 tonnes and 120,000 tonnes.
The 13-year loan is guaranteed by the Nippon Export Investment Insurance (NEXI) and the Vietnam National Oil and Gas Group (PetroVietnam).
Speaking at the signing ceremony, Chief Executive Officer of Citibank Vietnam Brett Krause said: “The successful closing of this long term loan facility amidst highly challenging credit market conditions, both locally and internationally underlines the strong fundamentals and outlook for PetroVietnam as well as PetroVietnam Transportation Corp.”
Krause added that Citibank was honoured to be selected by PVTrans to play a key role in this landmark transaction which demonstrated their continued commitment to clients in Vietnam.
“The global economy and financial crisis has impacted Vietnam , some global investors have left Vietnam , but the economy continues to grow and we see Vietnam growing in the future,” Krause said. Citibank has poured capital into Vietnam , three times more than regulation limits, and we have no intention of taking investment capital out of the market because we have a stable and robust base in Vietnam ,” he added.
PVTrans Corp is a subsidiary of PetroVietnam- which holds 60 percent of PVTrans’ charter capital. The main business operation of PVTrans is the transportation of crude oil, petrol and other chemical products. CEO of PVTrans Pham Viet Anh said, “PVTrans expects to reach pre-tax profits of more than 100 billion VND (6 million USD) this year, and increase profits one and a half times in 2009”.
PVTrans has the largest fleet of liquid tankers in Vietnam with a combined capacity of nearly 400,000 tonnes. PVTrans has been assigned as the main carrier of oil products for the Dung Quat Oil Refinery Factory which is expected to start operations from February 2009.
According to the company’s development plan to 2015, PVTrans plans to invest 3 billion USD in developing its fleet in order to meet the transport needs for oil refineries in Vietnam, develop its international oil transportation services and invest in other services such as floating storage, and other oil and gal services.
Thursday, November 27, 2008
Đứt ống dẫn tại Dung Quất, dầu tràn ra biển
Sóng to, gió lớn đã làm đường ống dẫn dầu từ phao số 0 (SPM) tại vịnh Việt Thanh vào Nhà máy lọc dầu Dung Quất bị đứt 3 đoạn ngay các khớp nối, đã gây sự cố tràn dầu ra biển vào đêm 24/11.
Đây là lượng dầu diezen đang bơm từ tàu EAGLE MILWAUKEE (Singapore) vào nhà máy. Sau khi phát hiện đường ống dẫn dầu bị hỏng, nhà thầu Technip kịp thời cho Tàu dừng hoạt động bơm dầu để khắc phục sự cố tràn dầu ra biển.
Sáng nay (25/11), BQL dự án Nhà máy lọc dầu Dung Quất và Nhà thầu Technip đã huy động phương tiện chuyên dụng, lực lượng ứng cứu tràn dầu, xe cứu hỏa tại chỗ và cùng với Chi cục môi trường Quảng Ngãi khẩn trương khoanh vùng, xử lý lượng dầu tràn ra biển nhằm hạn chế thấp nhất việc ô nhiễm môi trường trong vùng.
Đồng thời, nhà thầu điều động chuyên gia nước ngoài, kỹ sư tập trung khắc phục nhanh sự cố đường ống và tiếp tục nhập hoàn tất 52.500 tấn dầu diezen trước ngày 30/11 để bảo đảm phục vụ chạy thử Nhà máy lọc dầu Dung Quất theo lộ trình qui định.
30 percent of oil refinery stocks to be sold abroad
The Vietnam National Oil and Gas Group (PetroVietnam) has announced that it will sell up to 30 percent of its shares in oil refineries to foreign partners that are ready and willing to supply crude oil to those plants on a long-term basis.
Delivering this announcement during the West Pacific gas industry’s 10 th conference-cum-exhibition that took place recently, PetroVietnam’s General Director Tran Ngoc Canh stressed that the percentage of stocks to be sold may be increased in special cases.
As well as Dung Quat, the country’s first oil refinery, currently being built in the central province of Quang Ngai and scheduled for completion in February 2009, PetroVietnam has plans to build two other plants.
One of these two, with an estimated output capacity of 200,000 barrels a day and investment capital of 6 billion USD, is to be built in the central province of Thanh Hoa in a joint venture with the Kuwait international oil and gas group and the Idemitsu Kosan group of Japan .
The other, also with a production capacity of 200,000 barrels a day, is scheduled to be built in the southern region, the country’s largest consumer centre. The project is still at the discussion stag with foreign partners, including the Venezuelan National Oil and Gas Group.
Despite being the third-largest producer of crude oil in Southeast Asia with an average output of 300,000 barrels a day, Vietnam still has to import petroleum due to lack of oil refineries.
According to PetroVietnam, the country will need to buy approximately 26.5 tonnes of crude oil to supply the three refineries when they are operational.
Currently, BP Plc and Royal Dutch Shell Plc, as well as a number of companies from Venezuela and the Middle East are in a race to become a supplier of crude oil to Vietnam .
Once operational, these three oil refineries will help the country to reduce its import and trade deficit.
Thursday, November 20, 2008
Yellow Lion oilfield starts pumping black gold
Hanoi (VNA) – Vietnam’s fourth-largest oilfield, the Su Tu Vang (Yellow Lion) oilfield, situated on lot 15-1 on a continental shelf off the central province of Binh Thuan, has officially commenced production.
Vu Ngoc An, General Director of the Cuu Long Joint Operating Company (CL JOC), told a press briefing in Hanoi on Nov. 19 that in the month since the field’s first oil well began pumping on Oct. 14, the company has put another four wells into use.
An said that, once the sixth well in the Su Tu Vang oilfield is operational, his company expects to double its crude oil output to 100,000 barrels per day. As a result, the total output for this year is expected to hit 3 million tonnes, 10 percent higher than planned.
The CL JOC, the first company of its kind in Vietnam, was established under an agreement regarding oil exploitation on Lot 15-1, signed on Sept. 16, 1998 by the Vietnam Oil and Gas Group (PetroVietnam)’s Exploration and Production Corporation (PVEP), the UK’s ConocoPhillips, the Republic of Korea’s National Oil and Gas Corporation and SK Company, and Monaco’s Geopetrol Company.
The company now operates four oilfields, including Su Tu Den (Black Lion), which commenced operations in Oct. 2003. Su Tu Trang (White Lion) and Su Tu Nau (Brown Lion) are scheduled to begin production in next few years.
The CL JOC has been one of the nation’s top two companies in crude oil output and export since 2003, second only to the Vietnam-Russia Oil and Gas Joint Venture (Vietsovpetro).-Enditem
