S. Korean and Vietnamese companies agree to start building Dung Quat oil storage terminal
SEOUL, AJU - South Korean and Vietnamese companies will push ahead with the delayed construction of a $250-million underground oil storage terminal in the Dung Quat zone in central Vietnam from the third quarter of this year.
Initially, PetroVietnam Oil Stockpile (PVOS), a unit of Vietnam's state-run oil and gas group PetroVietnam, was allowed to start building the storage facility with a total storage capacity of one million cubic meters in 2016, but construction has been delayed for various reasons. The Dung Quat zone has Vietnam's largest refinery.
A new joint development agreement was signed between PVOS and South Korean companies including Korea National Oil Corporation (KNOC), LT Sambo, Koramco Asset Management and Korea Overseas Infrastructure & Urban Development Corp. (KIND), a state entity that supports overseas investment projects.
KNOC, a state oil and gas company, is responsible for technological support, operation and management, while Koramco Asset Management is in charge of business development and financing.
LT Sambo will form a consortium with Pields Engineering, a South Korean petrochemical company, to participate in design, procurement and construction as well as technical support and equity investment. KIND will participate as a financial investor.