A view of the Dung Quat oil refinery, the first of its kind in Vietnam. (Photo: bsr.com.vn)
The government of Vietnam’s central province of Binh Dinh has asked Thailand’s PTT Group and Saudi Aramco to finish details of a plan to invest in a $22-billion petrochemical complex by the end of this month.
If they fail to meet the deadline, they will have to quit from the project and hand over the land already allocated to them, local website Zing News cited Nguyen Ngoc Toan, deputy director of the Nhon Hoi Economic Zone Management Board.
The investors have contracted experts, including the Vietnam Petroleum Institute, to reevaluate the project as global oil prices have decreased sharply, Mr. Toan added.
According to the initial roadmap, the investors were due to filed for an investment license in mid-2015.
PTT and Saudi Aramco last year informed that they were in search for a domestic partner to proceed with the mega project. Vietnam National Petroleum Group or Petrolimex, the country’s largest fuel distributor, declined the proposal to join the project.
As per the prefeasibility study, the facility would have an investment of $22 billion and an annual capacity of 400,000 barrels per day or 20 million tons of crude oil per year. Its capacity can be lifted to 30 million tons per year after 2021.
However, in February 2016, the investors hinted that they could downsize the investment due to an oil crash.