HÀ NỘI – Dung Quất Refinery is working with foreign oil groups to seek strategic investments for its privatisation, which is expected to be carried out in 2017.

Several foreign investors were showing interest in buying stakes at Dung Quất Refinery, according to Trần Ngọc Nguyên, general director of the refinery’s operator Bình Sơn Oil Refining and Petrochemical Company Limited (BSR), a subsidiary of Việt Nam National Oil and Gas Group (PetroVietnam), was quoted as saying by Government news portal chinhphu.vn.

Nguyên noted that 2017 would be the year for the oil refinery to be privatised.

BSR was actively working with foreign companies, including those from Russia, Thailand, Singapore and South Africa, to seek investments in Dung Quất Refinery, he added.

Regarding Gazprom Neft, which was previously reported to have dropped plans for buying a stake in the Dung Quất Refinery, Nguyên said the Russian oil producer still eyed buying stakes in the refinery.

He noted that the evaluation of the refinery’s assets were already completed and submitted to PetroVietnam and the Ministry of Industry and Trade for approval.

The asset value of Dung Quất Refinery is expected to be made public in mid-March 2017.

“The privatisation will help BRS to enrich its financial resources to invest in oil refining and petro-chemistry,” he added.

BSR, meanwhile, said domestic consumption would be prioritised now, as the oil refinery’s capacity met only 40 per cent of domestic demand. However, it would expand exports in the next five to 10 years and focus more in petro chemistry in order to compete.

Nguyên also said the plant would improve corporate governance to reduce product costs.

This year is regarded as a successful year for BSR, with total output of 6.84 million tonnes and consumption of 6.8 million tonnes. The company earned estimated revenues of VNĐ72.5 trillion (US$3.2 billion) in 2016 and contributed nearly VNĐ12 trillion to the State budget. - VNS