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27

Russia comes back to Vietnam: Strike oil

The Russian oil firms will construct petroleum refineries in Vietnam. It is conventional, that the aggressive protectionist policy and a policy of the trading wars, held by the western countries right after The Great depression (1929–1933), not only became the reason of an economic collapse, furthermore: it led to the war.

The Russian oil firms will construct petroleum refineries in Vietnam.

It is conventional, that the aggressive protectionist policy and a policy of the trading wars, held by the western countries right after The Great depression (1929–1933), not only became the reason of an economic collapse, furthermore: it led to the war.

Russia does not wish to go this way, and therefore tries to adjust attitudes with all participants of the market.

So, entering the Vietnamese market by our companies, considered by some foreign politicians as aggressive trade intervention, is no more than the move, proceeding from external economic policy of peace. And only our companies wish to build normal relations with all companies in Vietnam.

In recent years the Vietnam’s crude oil production is on the decline. At the moment the country’s oil production capacity is 310 thousand bpd (about 15.6 million tons a year). All Vietnamese crude oil goes for export as Vietnam still has no single refinery! Thus the Russian oil companies’ move can be regarded also as a helping hand to friendly people!

The joint Russian-Vietnamese crude oil refinery of 500 million dollars worth will be located in the seaport of Vung Ro, Fu Yen province.

A new refinery is to process the crude from the Middle East; and it’s likely to be launched in 2011-2012.
However, the first refinery in Vietnam will be a factory in the city of Dung Kuat in the central part of the country. The first production is expected in 2009 with a capacity of 6.5 million tons of oil per year. In 2013 it is planned to put in operation two more refineries in Long Son (7-9 million tons a year) and Ngi Son (8,5 million tons a year).

It should be recalled, that exploration and extraction of hydrocarbons on offshore Vietnam is operated by Russian company of Zarubezhneft jointly with some Vietnamese companies. The Russian-Vietnamese joint venture Vietsovpetro provides about 60 per cent of oil production in Vietnam and it is considered the most successful project of Zarubezhneft.

In the beginning of November Victor Khristenko, the head of Russia’s Ministry of Industry and Energy, noted that the relations between Russian and Vietnamese oil companies are quickly developing; and the agreement between the two countries on activity extension of Vietsovpetro is likely to be signed at government level up to the end of this year.

Author: Denis Kozlov

Source : Neftegaz.RU Magazine