QP, which held 25 per cent in the joint venture through subsidiary Qatar Petroleum International Vietnam (QPIV), decided to withdraw from the project in 2015. Since then, SCG has repeatedly told media that it was trying to find another investor to replace QPIV. The acquisition shows that SCG has failed to find a suitable partner.

 

With the acquisition, SCG has become the biggest shareholder in the project with 71 per cent, while Vietnamese partner PetroVietnam holds another 29 per cent.

 

The Post quoted a statement from SCG as saying that the deal is worth $36.1 million. With a construction period of five years, operations are expected to start in 2021. 

 

Licensed for the first time in 2008, the $4.5 billion project has an area of 460 hectares and is located in Vung Tau City. Of the area, 398 hectares will house factories and the remaining is reserved for the construction of a port. The project will produce input for many other industries, such as packaging, textile, car manufacturing, and electronics manufacturing.

 

At the moment there is only one operating refinery in Vietnam, Dung Quat Refinery. Nghi Son refinery, a joint venture between PetroVietnam, Kuwait Petroleum International, Idemitsu Kosan, and Mitsui Chemical International, is expected to be completed as soon as the third quarter of this year.