Technip to hand over Dung Quat refinery to PetroVietnam

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French contractor Technip will hand over Vietnam's first oil refinery Dung Quat to PetroVietnam on May 25 after some delays due to operational issues.

Dang Hong Son, head of Dung Quat refinery management board, said Friday that after the handover, Technip will still be responsible for fixing some existing technical errors.

It will also be in charge of transferring operation technology to the refinery's engineers and workers and providing warranty services over the next two years, he said.

The 140,000-bpd refinery, based in the central province of Quang Ngai, resumed full capacity on May 20 after two weeks of running at 65 percent.

Dung Quat has seen its handover deadline repeatedly rescheduled since the original date of February 25, and officials cited operational problems as the main reason.

The refinery began a test run in February 2009 but technical problems caused shutdowns in August, September and December.

The plant, set to meet 30 percent of Vietnam's oil products demand once it is operating at full capacity, has processed 3.74 million tons of crude and produced nearly 3 million tons of petroleum products as of May.

It is expected to produce 4.76 million tons of oil products this year for a turnover of VND63 trillion (US$3.3 billion).

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