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Tuesday,  Oct 17,2017,23:39 (GMT+7)

Petrolimex to acquire stake at Dung Quat Oil Refinery

Lan Nhi
Saturday,  Aug 12,2017,00:14 (GMT+7)
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Petrolimex to acquire stake at Dung Quat Oil Refinery

Lan Nhi

A view of Dung Quat Oil Refinery in Quang Ngai Province. Petrolimex yesterday signed a memorandum of understanding with Binh Son Refining and Petrochemical Co Ltd (BSR), the operator of Dung Quat Oil Refinery, to buy BSR shares - PHOTO: PHAM VU

HANOI - Vietnam National Petroleum Corp. (Petrolimex) on August 10 signed a memorandum of understanding with Binh Son Refining and Petrochemical Co Ltd (BSR) to buy BSR shares at an initial public offering (IPO) set for late this year.

The two sides agreed to become strategic shareholders of each other. BSR, the operator of Dung Quat Oil Refinery in the central province of Quang Ngai, plans to sell 50% of the State stake. After Petrolimex’s IPO in July 2011, the State stake is now down to 75.87%.

Petrolimex, which buys 42% of BSR’s fuel output, the highest in the country, will secure a stable outlet for BSR’s petrol, liquefied petroleum gas (LPG) and petrochemical products.

Petrolimex will be a priority partner to export Dung Quat’s fuels to Laos and Cambodia.

After seven years of operation, Dung Quat Oil Refinery has sold more than 47.2 million tons of fuels, meeting 40% of domestic needs, gained US$36 billion in revenue and contributed over US$7 billion to the State budget.

BSR is working on a plan to sell shares to investors to raise funds for the second phase of the oil refinery upgrade and expansion project costing some US$1.8 billion, of which 70% would come from loans.

Petrolimex is Vietnam’s biggest fuel trader with a 50% market share.

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