Vietnam's largest oil refinery says agreement will allow stable operations
Vietnam's Nghi Son Refinery and Petrochemical (NSRP) has said a lengthy shutdown will not be required for now after a major shareholder reached a short-term funding deal to keep the facility operational.
NSRP, the country's largest refinery, had faced a possible shutdown due to a disagreement between shareholders about financing for crude oil and had earlier cut its production to 80% of capacity.
In a statement late on Sunday, NSRP said the company had sought relevant approvals from its sponsors on a short-term proposal to meet its immediate funding needs.
"A solution has been agreed by the sponsors on the short-term proposal that will support NSRP in maintaining its stable operations and sustainability of the refinery moving forward," chief executive Atsushi Yamamoto said in the statement, without elaborating.
Shareholder PetroVietnam said on Friday it had agreed to make an early payment under a fuel offtake agreement, adding that the payment would help NSRP improve its liquidity and maintain its operations.
PetroVietnam holds a 25.1% stake in the 200,000-bpd refinery in Thanh Hoa province, which meets one-third of Vietnam's petroleum needs.
Japan's Idemitsu Kosan Co and Kuwait Petroleum both have a 35.1% share, while Mitsui Chemicals Inc holds 4.7%.
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