A view of the Dung Quat Refinery in Quang Ngai Province (Photo: VNA) Hanoi (VNA) - Investment firm SovicoHoldings is in talks with the Binh Son Refining and Petrochemical Company (BSRCo Ltd) on exploiting opportunities arising out of the latter’s equitisationprocess.
Thetalks are focusing on BSR’s equitisation plan for 2017 as well as its Dung QuatRefinery expansion project, another major task undertaken by the company.
“Theequtisation process is a chance for potential investors to partake in BSR’sprogress, while the Dung Quat expansion programme is still in its developmentalstage.
“Onceit is operational, BSR’s market value will surely change accordingly,” said TranNgoc Nguyen, BSR General Director.
Asthe operator and overseer of the Dung Quat Refinery, BSR intends to completethe expansion in 2021, he said.
Therefinery will increase its capacity by 30 percent to 8.5 million tonne of crudeoil per annum, meeting about 50 to 60 percent of domestic oil demand, andgenerate export products meeting EURO IV and V standards.
Executivesof both companies are also discussing import and export channels for BSR’scrude oil to accommodate Dung Quat’s expansion, operating capacity and growthopportunities in the context of fluctuating world oil prices.
“Wehope to have further in-depth meetings with BSR to gather enough informationbefore making our decisions on investing in BSR’s equitisation,” said NguyenThanh Hung, Chairman of Sovico Holdings.
Oncethe equitisation process starts in the third quarter of 2017, BSR expects toleave 49 per cent of its shares owned by the Vietnam Oil and Gas Group(PetroVietnam).
BSRaims to have three main investor groups: strategic shareholders, financialshareholders and registered shareholders.
SovicoHoldings’ current registered capital is VNĐ1 trillion (45 million USD), withinterests in a wide range of businesses including real estate. It is a majorityshareholder in private airline Vietjet Air.
BSR’s2016 revenue totalled 5 trillion VND (224.6 million USD), down 21 percent from2015. In the first quarter of 2017, however, the company has already earned apost-tax income of 1.8 trillion VND (80.8 million USD).
BSRgeneral director Nguyen disclosed that at the end of 2016, many foreignpartners had asked to purchase shares in the Dung Quat Refinery, includingRussia’s Gazprom Neft and oil companies from Thailand and Singapore.
Keycriteria for BSR’s future strategic partners include strong financialcapability and experience in the oil refining field, he said.-VNA
Thetalks are focusing on BSR’s equitisation plan for 2017 as well as its Dung QuatRefinery expansion project, another major task undertaken by the company.
“Theequtisation process is a chance for potential investors to partake in BSR’sprogress, while the Dung Quat expansion programme is still in its developmentalstage.
“Onceit is operational, BSR’s market value will surely change accordingly,” said TranNgoc Nguyen, BSR General Director.
Asthe operator and overseer of the Dung Quat Refinery, BSR intends to completethe expansion in 2021, he said.
Therefinery will increase its capacity by 30 percent to 8.5 million tonne of crudeoil per annum, meeting about 50 to 60 percent of domestic oil demand, andgenerate export products meeting EURO IV and V standards.
Executivesof both companies are also discussing import and export channels for BSR’scrude oil to accommodate Dung Quat’s expansion, operating capacity and growthopportunities in the context of fluctuating world oil prices.
“Wehope to have further in-depth meetings with BSR to gather enough informationbefore making our decisions on investing in BSR’s equitisation,” said NguyenThanh Hung, Chairman of Sovico Holdings.
Oncethe equitisation process starts in the third quarter of 2017, BSR expects toleave 49 per cent of its shares owned by the Vietnam Oil and Gas Group(PetroVietnam).
BSRaims to have three main investor groups: strategic shareholders, financialshareholders and registered shareholders.
SovicoHoldings’ current registered capital is VNĐ1 trillion (45 million USD), withinterests in a wide range of businesses including real estate. It is a majorityshareholder in private airline Vietjet Air.
BSR’s2016 revenue totalled 5 trillion VND (224.6 million USD), down 21 percent from2015. In the first quarter of 2017, however, the company has already earned apost-tax income of 1.8 trillion VND (80.8 million USD).
BSRgeneral director Nguyen disclosed that at the end of 2016, many foreignpartners had asked to purchase shares in the Dung Quat Refinery, includingRussia’s Gazprom Neft and oil companies from Thailand and Singapore.
Keycriteria for BSR’s future strategic partners include strong financialcapability and experience in the oil refining field, he said.-VNA
VNA
