State oil and gas PetroVietnam group said it has begun construction of an oil and gas terminal on Phu Quoc island off the country's southern coast at a combined investment of 5.6 trillion dong ($260 million).
The site will include oil storage tanks and is in preparation for tapping gas fields in blocks B, 48/95 and 52/97, which are 120 km southwest of Phu Quoc.
PetroVietnam acquired stakes in the blocs after buying all of U.S. oil major Chevron Corp's upstream assets in Vietnam, it said in a statement on Sunday.
PetroVietNam Technical Services Corp, a subsidiary of the oil and gas group, will invest 4.2 trillion dong to build the port, with the first phase to be completed in the second quarter of 2017, said the statement.
The non-bonded storage - to be paid for by PetroVietnam Oil Corp (PV Oil) - will hold 70,000 cubic meters of oil products and handle vessels of up to 80,000 tons in its first phase, which is slated for completion in the second quarter of 2017, the statement said.
Both foreign and domestic oil companies will be able to lease storage space at the port for oil product exports to third countries, PV Oil chief executive Doan Van Nhuom was quoted as saying in the statement.