Aug. 20 – Vietnam is raising its investment in the Dung Quat oil refinery from US$2.5 billion to more than US$3 million due to additional construction costs and the resettlement of villagers.
According to a government statement, the additional cost will be taken from the net income of crude oil sales used by state-owned Vietnam Oil & Gas Group. Vietnam has been dependent on imported oil products. When the Dung Quat oil refinery is finished, its annual capacity of 6.5 million cubic tons of crude oil should provide a third of the country’s fuel needs.
An estimated US$2.48 billion of the refinery budget will be allocated for engineering, procurement and construction contracts while the rest will be used for working capital and resettlement.
The Dung Quat oil refinery is the first oil refinery in the country located at the Dung Quat Bay in the central province of Quang Ngai. It began its first commercial batch of products in February.
