'Losing sleep' because of Nghi Son oil refinery

At the press conference on the afternoon of May 18, Mr. Tran Thanh Tung, Deputy Director of the Department of Petroleum and Coal ( Ministry of Industry and Trade ) said that the operation of Nghi Son Refinery and Petrochemical Plant plays an important role in supplying gasoline and oil to the country.

In the first 4 months of the year, Nghi Son Refinery and Petrochemical Plant produced more than 2.2 million tons of various types of gasoline and oil, of which more than 67,000 tons of gasoline and oil were produced in April 2023 alone.

In mid-May, the plant was still operating stably. In June, the third and fourth quarters, according to the plan, Nghi Son Refinery and Petrochemical Plant will carry out production operations registered with the Ministry of Industry and Trade.

Nghi Son Oil Refinery is controlled by foreign investors.

Faced with cash flow difficulties at the plant, on April 19, the Ministry of Industry and Trade sent a document to Nghi Son Refinery and Petrochemical Company Limited, PVN and foreign investors contributing capital to the project.

The representative of the Ministry of Industry and Trade affirmed that the restructuring of finance, apparatus and safe and stable operation of the factory is an internal issue of the enterprise. This is the responsibility of Nghi Son and the investors contributing capital, based on the commitments of the joint venture agreements, project documents and compliance with the provisions of Vietnamese law.

"Nghi Son Refinery, PVN and foreign investors, all parties must be proactive and coordinate to resolve difficulties and problems of this plant, ensuring the plant operates effectively and supplies enough gasoline and oil to the market," said Mr. Tung.

Adding more information about the situation of this factory, Mr. Do Thang Hai, Deputy Minister of Industry and Trade, also shared that Nghi Son Refinery and Petrochemical Plant accounts for 35-40% of domestic market demand, so every time the factory has problems, "we lose sleep and appetite".

According to Mr. Hai, Nghi Son Refinery and Petrochemical Plant is a joint venture between PVN, Kuwait and Japanese investors. The Vietnamese enterprise only contributes 25.1% of the capital. Therefore, its voice is only limited.

"The most difficult thing is that Nghi Son Refinery and Petrochemical Plant accounts for 35-40% of the market share, but we do not have the right to decide. At the same time, during operation, each year, the plant has at least 30-45 days of maintenance, not to mention technical problems," said the leader of the Ministry of Industry and Trade.

The Deputy Minister of Industry and Trade also affirmed: The Ministry is the industry management agency in the oil and gas sector, the resolution of the Nghi Son Refinery and Petrochemical Plant is an internal issue of this plant. The Government , ministries, or any state management agency only participates in accordance with the agreements of the parties that have made commitments.

The incident at Nghi Son oil refinery caused a shortage of 120,000m3 of gasoline and oil, and worries about compensation before Tet . The Ministry of Industry and Trade has discussed with Nghi Son Refinery and Petrochemical Company Limited (NSRP) about the incident at this plant. The technical incident will cause a shortage of about 120,000m3 of gasoline and oil, but it is expected to be resolved before January 15, 2023, to compensate for output before Tet.

Source