Gazprom stops to buy shares of Dung Quat Oil Refinery Plant

Gazprom stops to buy shares of Dung Quat Oil Refinery Plant - 

The Gazprom Neft Corporation of Russia has officially sent a letter with a proposal to stop the negotiation process on transferring a 49% stake of Dung Quat Oil Refinery Plant (ORP).

According to information of Vietnam Oil and Gas Group (PVN), Gazprom Neft would not buy a 49% stake of Dung Quất ORP in the short term as expected.

Previously, Gazprom Neft sent a petition to the ministries and agencies of Vietnam on proposing incentive mechanisms and conditions for Gazprom Neft to cooperate with Dung Quat ORP. Replying to this, the Ministry of Industry and Trade (MOIT) of Vietnam has affirmed not to continue the preferential import tax for Dung Quat after 2018".

However, in the face of the equitization policy of Dung Quat ORP of PetroVietnam, Gazprom Neft will study opportunities for purchasing shares of the Plant in future.

That Gazprom purchases Dung Quat ORP 49% stake was agreed on the occasion of the Russian Prime Minister Dmitry Medvedev visit to Vietnam in April 5-7, 2015. The framework agreement of this business was signed by Gazprom and Binh Son Single Member Refinery Company Limited (The Management Company of Dung Quat ORP).

In negotiations, the Russian companies would like to buy 49% shares of Dung Quat ORP of the plant for investment to modernizing equipment and improving crude oil supply.

One of the principal requirements of the Vietnam side was that the partner needs to ensure the plant operating at full designed (100%) capacity.

During Mr. Dmitry Mevedev’ visit in Vietnam, Russia and Vietnam clearly defined Gazprom Neft will be the PVN’ partner in Dung Quat ORP extending project.

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