Malaysia’s PETMAL Oil eyes $2 bln refinery project in Vietnam

Malaysia’s PETMAL Oil Holdings is seeking to invest in a 500-hectare oil refinery with an initial capital of $2 billion in Nam Phu Yen Economic Zone, the south-central province of Phu Yen.

PETMAL Oil chairman and CEO Dato Paduka Affendi made the proposal to Phu Yen Chairman Ta Anh Tuan at a meeting Wednesday. He said the project may take 36 months to complete construction.

Lauding the proposal, Tuan said it matches the province’s socioeconomic development path as Nam Phu Yen Economic Zone is a government priority, particularly investments in Hoa Tam Industrial Park and Bai Goc seaport. The economic zone, also a coastal one, is set to establish a mega deep-water port to attract seaport-related industries, including oil refining.

He affirmed the province would facilitate the project and urged the Malaysian company to discuss details with provincial authorities.

The 20,730-hectare Nam Phu Yen Economic Zone is one of eight key coastal economic zones of Vietnam. At present, 2,216 hectares of land are available for investment.

Last week, Vietnamese Deputy Prime Minister Tran Hong Ha surveyed sites for the construction of the 220-hectare Bai Goc seaport, which will feature 86 hectares of water surface and 134 hectares of land.

The facility is set to include a general wharf able to accommodate ships of up to 50,000 tons; and specific wharves for steel production, oil refinery, gas and liquid goods, likely to vessels of up to 250,000 tons.

Ha also asked Phu Yen province to build the seaport using the latest and eco-friendly technology, along with suitable planning to develop nearby urban areas and houses for workers.

Vietnam has two operational oil refineries - the Nghi Son Refinery and Petrochemical complex in Thanh Hoa province and Dung Quat Refinery in Quang Ngai province, both in the central region.

Nghi Son is a $9 billion refinery co-owned by Petrovietnam, Kuwait Petroleum Europe B.V. (KPE), and Japan’s Mitsui Chemical and Idemitsu Kosan Co. Dung Quat Refinery is a Petrovietnam subsidiary and has received more than $3 billion in investments.

The Long Son Petrochemicals Complex in the southern province of Ba Ria-Vung Tau could enter commercial operation in mid-2023 as construction had been 98% complete, Tharna Sanee, general director of Long Son Petrochemicals Company Limited (LSP) said in February.

Upon operation, the project can employ 1,000 people and contribute VND2.5 trillion ($105 million) to the state budget yearly.