Petrovietnam eyes US-based KBR involvement in Vietnam oil industry

The state-run Petrovietnam has suggested U.S. engineering and construction corporation KBR join investments in the mammoth Long Son Petrochemical Complex project in southern Vietnam.

Petrovietnam Chairman Hoang Quoc Vuong, during his meeting with KBR President Douglas Kelly in Hanoi on Monday, said he expected the U.S. major to get involved in the development of the significant project.

The Long Son project, which is under construction in Ba Ria-Vung Tau province, is invested by Thai conglomerate SCG with a total registered capital of about $5.4 billion.

The complex will have an annual capacity of olefins at 1.35 million tons and polyolefin at 1.4 million tons, according to SCG. The giant expects the project to start operation next year.

In August 2018, SCG signed loan agreements worth more than $3.2 billion with six leading financial institutions to carry out the project. The lenders were Sumitomo Mitsui Banking Corporation, Mizuho Bank, Bangkok Bank, Krungthai Bank, Siam Commercial Bank, and Export-Import Bank of Thailand.

Vuong also suggested to Kelly that KBR provide new technology solutions to the expansion project of Dung Quat Oil Refinery in the central province of Quang Ngai.

Vuong added that in Petrovietnam's development strategy, apart from exploration and exploitation of oil and gas - the group's core business, oil refining and power development, especially renewables including offshore wind power, are its priorities amid the country's efforts to achieve carbon neutrality by 2050 and to ensure national energy security in the future.