World’s largest oil firm Saudi Aramco eyes refinery investment in Vietnam

State-owned Saudi Aramco, the world’s most valuable petroleum and gas company, has expressed interest in investing in Vietnam, including building oil refineries.

The information was revealed during a recent meeting between a Saudi Aramco delegation and the highest leadership of government-controlled Petrolimex, Vietnam’s largest petroleum retailer.

The Saudi Arabian giant, popularly known as Aramco, which provides crude oil for businesses in Vietnam, has yet to make an investment in the Southeast Asian country.

At the meeting, Petrolimex chairman Pham Van Thanh noted that his company is a leading downstream trader with a network of 5,500 filling stations across the country, including 2,800 under its direct management. The firm commands nearly a 50% market share.

Thanh proposed Aramco consider cooperation opportunities in the fields of petrochemicals; production and distribution of petrochemical products such as liquefied gas, gas, and lubricants; and insurance, among others.

Petrolimex CEO Dao Nam Hai noted that his company is the sole downstream trader to own a bonded petroleum terminal – the Van Phong Terminal (VPT) in the central province of Khanh Hoa.

Hai suggested Aramco pick the terminal as a gateway for petroleum trading in Vietnam. “Petrolimex stands ready to join hands with Aramco in making petroleum products available,” he stated.

For his part, Ziyad Juraifani, vice president of retail, Aramco, expressed hope that a potential strategic partnership between Aramco and Petrolimex will lead to considerable competitive edges in Vietnam.

In October 2023, at a meeting with Vietnam’s Prime Minister Pham Minh Chinh, who was in Saudi Arabia to attend the ASEAN-Gulf Cooperation Council (GCC) Summit, executive vice president of Aramco Yasser M.Mufti revealed the firm’s intention to build a petrochemical plant in Vietnam.

Vietnam is home to the operational Dung Quat oil refinery in the central province of Quang Ngai and Nghi Son refinery and petrochemical complex in the central province of Thanh Hoa.

The $5.4 billion Long Son Petrochemicals Complex (LSP), invested by Thailand’s Siam Cement Group, in Ba Ria-Vung Tau province is scheduled to start commercial operations next month.