Dung Quat Oil Refinery in central Quang Ngai province (Photo: VNA)

Hanoi (VNA) – The State-owned Binh Son Refinery and Petrochemical Company Limited (BSR) has completed the overall plan for the upgrade and expansion of the Dung Quat Oil Refinery.

Tran Ngoc Nguyen, CEO of BSR, said the expansion project will cost more than 1.8 billion USD, of which equity capital and loan capital will account for at least 30 percent and 70 percent, respectively.

BSR plans to borrow some 1.26 billion USD, Nguyen said, adding that the estimated loan amount is in line with the Prime Minister’s decision on granting approval.

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Under the project, BSR will set up and put into operation some additional technology workshops for the processing of crude oil with higher sulfur content, such as Murban, ESPO and Arab Light, increasing the stable supply of petroleum products in accordance with the Euro 5 standard.

Crude oil supply of the refinery will also be significantly increased, thus helping it become less dependent on crude oil supply from the Bach Ho (White Tiger) oil field.

Expansion work is expected to be completed by 2021, following which Dung Quat Oil Refinery will have capacity to refine 8.5 tonnes of crude oil per year.-VNA