More than 1.25 billion USD to upgrade and expand the Dung Quat oil refinery

DNHN - According to Binh Son Refining and Petrochemical Joint Stock Company (BSR), Deputy Prime Minister Tran Hong Ha signed Decision No. 482/QD-TTg dated 5/5/2023 approving the adjustment of investment policy for the project.

The processing capacity of Dung Quat will be increased from 148,000 barrels per day (equivalent to 6.5 million tonnes per year) to 171,000 barrels per day (7.6) by the investment adjustment policy submitted by BSR to the Government. A million tonnes per year), which is equal to 171,000 barrels per day, four items must be added. BSR will add five new workshops on patented technologies, including IBythe Government's road map, the factory's output will conform to Euro V and environmental standards, such as The following workshops must be modified and enhanced: Crude oil distillation workshop; Fluid bed catalytic cracking workshop; Workshop for treating naphtha with hydrogen; Isomerization Workshop; Continuous catalytic reforming workshop; Propylene recovery workshop; Workshop for treating kerosene; Workshop for handling liquefied petroleum gas; Workshop for treating light oil with hydrogen.

In addition, the adjustment policy modifies the Investor's registered investment capital and capital structure. According to the policy, the total investment capital required for the Dung Quat Oil Refinery Refinery Project is approximately USD 1,257.0 billion. The source of capital will consist of 40% equity and 60% loan, and BSR will be considered to adjust the equity/loan capital structure to reflect reality. The Dung Quat Refinery Refinery Project will have approximately USD 503 million in equity and USD 754 million in loan capital.

To meet this capacity, the project includes 4 additional items, including 5 new copyright technology workshops; 2 technology workshops without copyright; supplementing auxiliary and peripheral workshops; renovating and installing several new items, equipment, or workshop clusters to accommodate the factory's increased capacity.

In addition, the Deputy Prime Minister approved and adjusted investment capital and capital structure. Accordingly, the total investment capital of the project exceeds 31,2 trillion VND, which is equivalent to 1,257 billion USD, with 40% equity (503 million USD, equivalent to 12,494 billion VND) and 60% loans (USD 754 million, equivalent to VND18,744 billion).

The capital that must be balanced consists of VND 27,299 billion (calculated from the initial total investment minus VAT refunded and actual expenses). With equity capital totaling 10,920 billion VND and loan capital totaling 16,379 billion VND.

According to the People's Committee of Quang Ngai province, the Dung Quat Oil Refinery has contributed approximately 115 trillion VND and import and export taxes from the Economic Zone (EZ) to the central budget since it began operations in 2009 (2009-2022). Dung Quat approximately 56 billion VND. Currently, the central budget only supports infrastructure investment in Dung Quat EZ in the amount of VND 1,583 billion (0.9% of revenue).

In addition, the Dung Quat Refinery Refinery Project will increase the flexibility of crude oil selection, contributing to the plant's long-term and reliable crude oil supply. The upgrade also improves the investment efficiency of the Dung Quat Oil Refinery, thereby contributing to the socioeconomic growth of the entire nation, particularly the Central region.

Trong Tam