Gazprom Neft (Russia) has stopped negotiations with Vietnam's state-owned oil and gas company PetroVietnam (PVN) on the potential sale of a stake in the sole operational refinery in Vietnam, citing Vietnam's unability to offer the preferences it sought.
The Vietnamese government invited Gazprom Neft to invest in the 130,000 bbl/d Dung Quat refinery to strengthen Vietnam-Russia relationships and to progressively privatise state-owned companies in Vietnam. In April 2015, Gazprom entered into exclusive negotiations with PetroVietnam to purchase a 49% stake in PVN's subsidiary Binh Son Refining and Petrochemical Company (BSR), the operator of the refinery.
The Dung Quat refinery was commissioned in 2009 and a 40,000 bbl/d expansion is planned by 2018. Two large refineries are also under construction in the country, the 160,000 bbl/d Vung Ro project and the 200,000 bbl/d Nghi Son refinery (developed by Kuwait Petroleum). Other projects are under consideration, as the 200,000 bbl/d Nam Van Phong project, the 200,000 bbl/d Long Son project or the 400,000 bbl/d Nhon Hoi project.
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