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Petrolimex and Daelim to build oil refinery in Vietnam

Petrolimex and its South Korean partner, Daelim Industrial Group, expects to begin construction of a US$3-billion oil refinery and petrochemical complex in the central province of Khanh Hoa in Vietnam by the end of the year. Vietnamโ€™s state-owned company, Petrolimex, holds a 60% stake in the project. The Nam Van Phong oil refinery and petrochemical plant will be built at the Van Phong Economic Zone, and will be one of the largest of its kind in Vietnam, with a total capacity of 10 million tons of crude oil per year. During the first phase, the Nam Van Phong oil refinery will have a capacity of four million tons of crude oil per year. Daelim, a major South Korean firm, will provide engineering-procurement-construction services to develop the refinery during the first phase. Petrolimex is the biggest fuel supplier in Vietnam with a nationwide distribution network of 2,100 retail outlets, and holds 55% of the market share. The worldโ€™s 13th most populous nation with 86.5 million people, Vietnam only has one oil refinery, the Dung Quat oil refinery which produces 19,000 tons of fuels. The Dung Quat refinery meets only 33% of the local demand, so the country relies heavily on imports of petroleum products. Vietnam plans to develop several refineries in the next five years. (July 30, 2012