Negotiations under which PetroVietnam will sell a 49% stake in the Dung Quat refinery, the country's sole oil processing facility, to the Russian oil company Gazprom Neft are expected to be soon concluded.

This was reported by the Russia-based Interfax-ANI news agency.

Dung Quat oil refinery

"At the current time, we don't see any obstacles that can destroy this potential agreement," Gazprom Neft's Chairman Alexander Dyukov was quoted as saying.

Dyukov said Viet Nam's economy was booming and its demand to import oil products was likely to increase. The oil refinery's capacity needed to be upgraded to make more profit.

Earlier, Gazprom Neft said it now had exclusive rights to negotiate with PetroVietnam on acquiring 49% of shares, the highest foreign ownership rate in a Vietnamese company, in the refinery operator's Binh Son Refining and Petrochemical Co. However, no value or timing was given for the purchase.

This negotiation is in line with an agreement signed between the two countries during Russian President Vladimir Putin's visit to Viet Nam in 2013. Following this, Gazprom Neft, the oil arm of top global gas producer Gazprom, may buy a 49% share in Dung Quat refinery.

The two countries also signed a tentative intergovernmental agreement under which, after the share purchase, the Russian company is responsible for supplying oil to Dung Quat refinery, from 3 million tonnes in 2015, 3.6 million tonnes in 2016 to 4.8 million tonnes in 2017 - and no lower than 6 million tonnes from 2018 onwards. 

(Source: VNA)