MOSCOW (MRC) -- Gazprom Neft, the St. Petersburg-headquartered Russian oil and gas company, and Vietnam Oil and Gas Group (PetroVietnam) have signed a framework agreement setting out the terms of Gazprom Neft’s acquisition of a 49% interest in Binh Son Refining and Petrochemical Co., reported GV with reference to operator of Vietnam’s Dung Quat refinery.
The two companies are currently in negotiations on financial terms of the acquisition. PetroVietnam has announced plans to reduce its 100% shareholding in the subsidiary to help finance a modernization and expansion project.
The 6.5-million-t/y refinery, the only refinery currently operating in Vietnam, is to be expanded to a capacity of 10-million t/y. Gazprom Neft noted that its contribution to the modernization project will be proportional to its stake.
The refinery also supplies propylene feedstock to Binh Son’s 150,000-t/y polypropylene plant at Dung Quat.
As MRC wrote previously, this summer, Gazprom Neft signed an agreement with France-based Total to form a joint venture to produce and sell modified bitumen and bitumen emulsions on the Russian market. Each partner will have a 50% stake in the joint venture, which will build a special production facility at Gazprom Neft's Moscow oil refinery. The facility will have a capacity of 60,000 tonnes of polymer modified bitumens and 7,000 tonnes of bitumen emulsions per year.
MRC