PetroVietnam Insurance Joint Stock Co (PVI) and Binh Son Oil Refining and Petrochemical Co Ltd on June 18 signed a US$3 billion insurance contract for the Dung Quat Oil Refinery, located in the central province of Quang Ngai.
Under the deal, PVI will provide an insurance programme covering varieties of risks and take responsibility to consult and develop procedures and solutions to minimise those risks.
PetroVietnam spent about US$3 billion on the construction of the refinery in the Dung Quat Economic Zone in the province’s Binh Son district. The group formally took over refinery operations from the contractors on May 30.
The facility has an annual capacity to process 6.5 million tonnes of crude oil into eight categories of petrol products, satisfying a third of the nation’s total demand.
On June 17, Binh Son Oil Refining and Petrochemical Co Ltd also signed three other deals with PetroVietnam affiliate PetrolVietnam Oil Corporation (PV Oil), under which it will purchase petrol and lubricant products from the Dung Quat facility, and ensure crude oil supplies to the refinery from the Bach Ho offshore oil field.
Binh Son will also negotiate with other partners to import additional oil beginning in August to guarantee sufficient supplies for the Dung Quat refinery.
US$3 billion insurance deal signed for oil refinery
PVI and Binh Son Oil Refining and Petrochemical Co Ltd signed a US$3 billion insurance contract for the Dung Quat Oil Refinery.
Source: VOV
