Government officials in Vietnam said last week that Thai energy company PTT and Saudi Arabia’s petroleum and natural gas company Saudi Aramco have joined forces to submit a proposal to develop the Nhon Hoi refinery and petrochemical complex in Binh Dinh Province, Vietnam.
According to Reuters, PTT and Saudi Aramco will contribute 40% each and the Vietnamese government will contribute the remaining 20% of the required investment. The project investment is estimated at US$22 billion which is US$6.7 billion less than the previous estimate.
According to the 2013 feasibility study the new facilities will have a processing capacity of 660,000 barrels per day, equivalent to 30 million tons of crude oil per year. However the estimate has been revised down to 440,000 barrels per day, or 20 million tons per year.
The project also includes an olefins and aromatic petrochemical plants which will have a combined capacity of 5 million tonnes a year. The project is expected to be operational by 2019- 2020.
Saudi Aramco will also be in charge of supplying crude oil for the refinery.
After the feasibility study was presented to the ministry, PTT, Saudi Aramco and leaders of Binh Dinh Province had a meeting with the Prime Minister, who has the final word to approve the project.
According to the U.S. Energy Information Administration Vietnam produced around 364,000 barrels per day (bbl/d) of oil in 2012, down from its peak of 403,000 bbl/d in 2004. Successful exploration has recently led to a substantial increase in proved crude oil reserves.