According to the budget estimate decision signed by Deputy Prime Minister Le Minh Khai, the Vietnam Oil and Gas Group (PVN) was assigned VND8,247 billion to handle finances and pay price compensation for the Nghi Son Oil Refinery's product purchase contract in 2018-2023. This amount was decided by the National Assembly last November, taken from the central budget's development investment expenditure source in 2023.
The Ministry of Finance and PVN are responsible for the accuracy of the data and implementation of the State Audit's recommendations on product underwriting results and price compensation amounts.
In 2023, Nghi Son Oil Refinery - the unit that accounts for 35% of the total domestic petroleum supply - faces many challenges. According to the audited financial report, the company still has large accumulated losses, and although pre-tax profits have improved in recent years, they have not made significant changes. The Vietnam National Oil and Gas Group (PVN) is still making up for losses when the plant is in commercial operation.
Nghi Son Refinery and Petrochemical Plant is one of the key projects in Nghi Son Economic Zone (Thanh Hoa) with a capital of 9 billion USD. The plant is a joint venture project of 4 enterprises including Vietnam National Oil and Gas Group (PVN), Kuwait Petroleum International Company KPI, Idemitsu Kosan Company and Mitsui Chemicals Company.
Speaking to Lao Dong Newspaper reporters at an event in December 2023, Mr. Susumu Nibuya - Vice President of Idemitsu Kosan Company (Japan), a Japanese investor contributing 35% of capital to Nghi Son Oil Refinery - said that last October, the company completed the work of stopping the factory for periodic maintenance.
According to him, since the plant began commercial operations in 2018, this is the first time the plant has stopped and undergone maintenance on a large scale. Previously, the plant had some problems, so operations were not yet smooth.
This general maintenance stop, said Mr. Susumu Nibuya, has helped increase the plant's operating efficiency and output. According to the company's calculations and estimates, the productivity will double by 2024.
Regarding the factory's finances, Mr. Susumu Nibuya said that with the US adjusting interest rates with a downward trend, the company's management hopes that the general interest rate in the market will also be gradually adjusted downward.
Mr. Susumu Nibuya believes: “The important thing for us is how to operate the factory stably, to turn from loss to profit. Therefore, we are also coordinating with management agencies in Vietnam and the Japanese Embassy, shareholders to have measures to help the factory operate stably.”
According to Vice President of Idemitsu Kosan, Vietnam is a key market in Idemitsu Kosan's business strategy. Therefore, Idemitsu Kosan needs to cooperate more closely with each enterprise in Vietnam and seek new investment opportunities.
In addition, the Nghi Son Refinery and Petrochemical Project plays an important role in Vietnam's energy security, so prompt connection and timely communication are more necessary than ever with the Vietnamese Government, the Vietnam Oil and Gas Group (PVN) and the Embassy of Japan.
Source
Comment (0)