Vietnam’s largest oil refinery says agreement will allow stable operations
Vietnam’s Nghi Son Refinery and Petrochemical (NSRP) has said a lengthy shutdown will not be required for now after a major shareholder reached a short-term funding deal to keep the facility operational.
NSRP, the country’s largest refinery, had faced a possible shutdown due to a disagreement between shareholders about financing for crude oil and had earlier cut its production to 80% of capacity.
In a statement late on Sunday, NSRP said the company had sought relevant approvals from its sponsors on a short-term proposal to meet its immediate funding needs.
« A solution has been agreed by the sponsors on the short-term proposal that will support NSRP in maintaining its stable operations and sustainability of the refinery moving forward, » chief executive Atsushi Yamamoto said in the statement, without elaborating.
Shareholder PetroVietnam said on Friday it had agreed to make an early payment under a fuel offtake agreement, adding that the payment would help NSRP improve its liquidity and maintain its operations.
PetroVietnam holds a 25.1% stake in the 200,000 barrel-per-day refinery in Thanh Hoa province, which meets one-third of Vietnam’s petroleum needs.
Japan’s Idemitsu Kosan Co (5019.T) and Kuwait Petroleum both have a 35.1% share, while Mitsui Chemicals Inc (4183.T) holds 4.7%.
Reuters – 31 janvier 2022