Some Projects of PVN has possible Changes

Deputy Prime Minister – Mr. Vuong Dinh Hue acknowledged the efforts of PVN in deploying solutions and handling ineffective projects.

On February 26 in Hanoi, Deputy Prime Minister – Mr. Vuong Dinh Hue, Head of the Government's Steering Committee, dealt with the weaknesses and shortcomings of 12 projects, factories of Industry and Trade chaired the Steering Committee meeting of 1 year performance evaluation.

Deputy Prime Minister also noted the efforts of the Vietnam Oil and Gas Group in implementing the solutions and contents in the handling of inefficient projects:

In the spirit of drastic responsibility, up till now, the ineffective projects of PVN have made positive changes.

Petrovietnam Petrochemical and Textile Fiber Joint Stock Company. (PVTEX)

At present, VINATEX is assisting PVTEX to supply 100% of its PSF consumption capacity at market prices, technical assistance, operator’s training and market information.
At the same time, PVN has assisted PVTEX in working with some of its customers in the domestic PSF market in January of this year.

PVN and PVTEX have actively sought partners to cooperate in the operation of Dinh Vu fiberglass factory, including Fortrec Chemical (Singapore), Reliance Pte. Ltd. (India), An Phat Holdings (Vietnam) ...

On January 20, 1818, An Phat Holdings + Fortrec Chemical + Reliance Pte. Ltd. (APH) has reprocessed the proposed cooperative proposal and PVN, PVTEX has exchanged with APH to clarify the terms of cooperation.

Along with the cooperation with partners to restart the factory, now, PVTEX is planning to operate this workshop from the end of March 2018.

At the same time, shareholders are also planning to mobilize about 60 workers to carry out maintenance work, running machinery inspection and training, production organization to offer to customers in the North before operation for 3/29 DTY production in 6 months with total output about 1,153 tons of DTY type 75/72 SIM for the North market...

Dinh Vu Polyester Fiber Factory Project (PVTEX). (Photo: pvme.com.vn).

Dung Quat Biofuel Project - Vietnam Central Bio Fuels JSC (BSR-BF)
PTSC is implementing the construction of a cigar lake, which has completed about 50% of the work of building a lake. In addition, PTSC is working with BSR-BF to complete the legal procedures related to the construction of the lake (compensation for land clearance, permit ...).

About the commissioning of the factory operation: Currently, BSR-BF is negotiating the final round with Tocontap the terms of the business cooperation contract.

If the final round of negotiations succeeds, BSR-BF will cooperate with other partners to restart in the end of April 2018 (after the contract is about 2 months).
Binh Phuoc biofuel project/ Orient- Bio Fuel   (OBF)

According to the old plan, OBF will complete the maintenance and improvement of equipment and operation of the plant from 15^th January 2018, but the shareholders delayed contribution of capital and cancel the results of bidding for the maintenance package, therefore, the time for re-operation of the factory is delayed compared to the plan. (PVOil contributes only 29% of the chartered capital so it cannot decide the problems of the company).

On 2^nd February, 2018, OBF has signed a contract with TTCL Vietnam Co., Ltd. - a member of Thai TOYO Group - surveying, setting the scope of work and estimating the bid package and TVC have completed the scope of work, the cost estimate of the factory sent to OBF.

Under the plan, OBF will complete maintenance work and repair equipment and re-operate the plant in March 2018.

Phu Tho Biofuels Project (PVB)

PVN / PVOIL has assisted PVB to prepare investment invitation documents and publish information on invitation for investment cooperation on the newspaper as regulated from 4/12/2017 and 3 investors have come to collect the dossier Invited investment cooperation (Thai Son Company, Mepcom Company and LIMO Manufacturing and Trading Joint Stock Company).

PVN has appointed staff to consult and assist PVB to evaluate the dossier of project investment cooperation project.

Dung Quat Shipbuilding Factory Project (DQS)

According to the Prime Minister's Decision No. 1468 / QD-TT by 29^th September, 2007 approving the scheme on “Handling shortcomings of projects and enterprises which are behind schedule and ineffective in the Industry and Commerce “, guidelines for handling as follows:

“Transform ownership of DQS Company through valuation, auction of assets, debt. In case this plan is unsuccessful, the plan will be changed to: DQS bankruptcy in accordance with the law. "

In the coming time, PVN will continue to direct DQS to agree with SBIC on the plan of hiring an auditor, inspecting EPC equipment of Dung Quat Shipbuilding Factory Project ...

As such, PVN had focus on drastic measures to tackle weak projects (Dinh Vu Fiber, 3 Biofuel projects, Dung Quat Shipbuilding). The spirit of Politburo's conclusion, the direction of the Standing Government and Deputy Prime Minister - Mr. Vuong Dinh Hue, Ministry of Industry and Trade