Vietcombank lends $90 million to Dung Quat oil refinery operator

May 8, 2016 | 09:21 pm PT
Vietcombank has pledged loans worth a total of VND5 trillion ($224 million) to Binh Son Refining and Petrochemical Company, the operator of Vietnam's only working oil refinery and a subsidiary of state-owned oil giant PetroVietnam.

The amount secured by Binh Son Refining from Vietcombank so far this year is estimated at more than VND2 trillion, said chairman of the board Nghiem Xuan Thanh, adding that the commercial bank has also provided around $600 million in guarantees to support the company’s transactions and import and export activities.

Vietcombank signed a comprehensive cooperation agreement with Binh Son last Saturday.

Earlier this year, Russia's Gazprom Neft (GPN), the oil arm of top global gas producer Gazprom, halted negotiations to buy a 49 percent stake in Binh Son.

GPN was expected to become a strategic partner in the refinery and the purchase was part of Vietnam’s policy to privatize state-owned companies across various sectors.

Statistics show that Binh Son has processed about 36 million tons of oil products since the Dung Quat oil refinery went into operation. The refinery is said to be able to handle about 135,000 barrels of crude oil a day.

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