Hyundai E&C, Technip attend bid to upgrade Vietnam’s Dung Quat oil refinery

The refinery operator said on Thursday it received documents from two consortiums led by Hyundai E&C and Technip Italy.

Beside, PetroVietnam Technical Services Corporation and Vietnam Machinery Erection Corporation, known as LILAMA are also bidding for the project.

After being upgraded and expanded, the refinery’s capacity will be increased by 30 percent to 8.5 million tonnes of crude oil per year, or equivalent to a capacity of up to 192,000 barrels per day, Binh Son Refining and Petrochemical said.

Winner of the bid will be announced within a month, a company source told Reuters. The source added that the refinery was running at full capacity after it was restarted more than a week ago following a 50-day shutdown for maintenance.

The upgrading and expansion project is a key project of the petroleum sector. It is a necessary and urgent task to ensure that the plant operates flexibly, stably, effectively, said BSR Chairman Nguyen Van Hoi.

The refinery with capacity of 130,000 barrel per day in Quang Ngai province began commercial operations in 2009. It was originally designed to process mostly crude oil from Vietnam’s Bach Ho field, whose production has peaked.

Work on the expansion and upgrade of the refinery is scheduled to start in August 2021.