Accordingly, Deputy Prime Minister Tran Hong Ha has just signed Decision No. 482/QD-TTg dated May 5, 2023 approving the adjustment of the investment policy of the Dung Quat Oil Refinery Upgrading and Expansion Project of Binh Son Refining and Petrochemical Joint Stock Company.
Specifically, the Deputy Prime Minister approved the adjustment of the investment policy of the Dung Quat Oil Refinery Upgrading and Expansion Project, which was approved by the Prime Minister in Official Dispatch No. 2579/TTg-KTN dated December 16, 2014, approved by the Vietnam Oil and Gas Group in Decision No. 9016/QD-DKVN dated December 22, 2014; and granted Investment Registration Certificate No. 0551553522 by the Dung Quat Economic Zone Management Board on June 21, 2016.
Increasing the processing capacity of Dung Quat oil refinery to 171,000 barrels/day. Illustrative photo
Notably, regarding the adjustment of investment targets, the Government allows investment in upgrading and expanding the existing Dung Quat Oil Refinery to increase the processing capacity of the plant from 148,000 barrels/day to 171,000 barrels/day; products meeting EURO V standards; meeting environmental standards according to the Government's mandatory roadmap;
Increase flexibility in selecting crude oil, ensure long-term and effective crude oil supply for the Factory; improve investment efficiency of Dung Quat Oil Refinery; contribute to promoting economic and social development of the whole country, especially the Central region.
Along with that, the project will add and upgrade technological, auxiliary and peripheral workshops to meet the plant's capacity of 171,000 barrels/day.
Adjusting investment capital and capital structure registered by investors
According to the Decision, the total investment capital is about 31,235 billion VND, equivalent to 1.257 billion USD (at exchange rate: 01 USD = 24,858 VND).
Capital (according to the structure of equity/loan capital: 40/60, Investors are considered to adjust the structure of equity/loan capital to suit the actual ability to balance resources and bring higher efficiency): Equity capital: 12,494 billion VND, equivalent to: 503 million USD. Loan capital: 18,741 billion VND, equivalent to 754 million USD.
The capital required to balance the source is: 27,299 billion VND (calculated from the preliminary total investment minus (-) VAT refund and implemented costs), including: Owner's equity: 10,920 billion VND. Loan capital: 16,379 billion VND.
The EPC Contract implementation project is expected to take 37 months. The factory will be put into operation in the first quarter of 2028.
The project investor is Binh Son Refining and Petrochemical Joint Stock Company. Head office address: 208 Hung Vuong Avenue, Tran Phu Ward, Quang Ngai City, Quang Ngai Province.
Business registration: No. 4300378569 first issued by the Department of Planning and Investment of Quang Ngai province on June 5, 2008, registered for the 14th change on November 8, 2021.
Legal representative: Mr. Bui Ngoc Duong, position: General Director.
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