Abu Dhabi-based Baron Point Petroleum Services Company has formed a joint venture with Vietnam’s stated-owned oil and gas company PetroVietnam Oil Corporation. The joint venture plans to finance, build and operate petroleum product pipelines and storage tanks in Vietnam, as well as source and trade petroleum products in international markets.
The USD150 million Bonded Terminal System, which will be built by the joint venture on Phu Quoc Island, will supply and store crude oil and refined petroleum products, as well as general bunker supply, to serve the needs of southern Vietnam and the broader Southeast Asia region.
Growth prospects for the Bonded Terminal System include offtake of refined fuel in markets such as Vietnam, Cambodia, the Philippines, Myanmar, Indonesia and Singapore.
Specifically located at Dat Do Point, in the town of An Thoi, Phu Quoc District, Kien Giang Province, the area being developed spans approximately 570 square kilometres.
Baron Point Petroleum will undertake the investment, construction and supply of the Bonded Terminal System, which includes allocations of national strategic reserves. The investment will be developed in conjunction with regional and international strategic partners.
Nguyen Hoang Tuan, who is the chairman of PetroVietnam Oil Corporation, said “We are expanding by developing Phu Quoc Island and the southern Vietnamese supply channel in partnership with Baron Point Petroleum. This strategic development has attracted strong financial and energy market expertise and the resources needed to propel Vietnam’s growth.”
Baron Point Petroleum is majority-owned by HH Sheikh Khalifa Bin Khalid Bin Ahmed Al Hamed, in partnership with an accomplished team of senior managers and experts headed by Managing Partner and CEO James Philip Coppola III.
Drawing on its strategic placement in the global oil power-house centre of Abu Dhabi, combined with its New York structuring expertise, Baron Point Petroleum will provide PetroVietnam with best-in-class skills, people and processes to support the national oil group’s growth.
During a ceremony in Ho Chi Minh City at PetroVietnam Oil Corporation’s headquarters, the two companies signed the joint venture memorandum of agreement, with Tuan and Coppola, as well as several members of the senior management team.