PetroVietnam officially takes over Dung Quat refinery

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Vietnam's first oil refinery Dung Quat has been approved for official commercial production and transferred to state-owned PetroVietnam this weekend.

There are still 34 minor technical problems at the plant but they will not affect production safety and product quality, Phung Dinh Thuc, general director of the national oil and gas group, said at a press briefing Saturday.

French contractor Technip is responsible for fixing all the problems, he said. The company has been fined US$16 million following repeated delays in project handover. Dung Quat, located in the central province of Quang Ngai, was previously scheduled for completion on February 25. 

The $3 billion plus plant, with an annual capacity of 6.5 million tons, is expected to meet 30 percent of Vietnam's demand for oil products.

As of this month, the plant has consumed more than 4 million tons of crude. It has sold 3 million tons of oil products to the market, including gasoline, liquefied petroleum gas, diesel and fuel oil.

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