After the withdrawal of Vinachem, Qatar Petroleum International and now PetroVietnam, SCG is the sole investor of the project with a 100 percent equity stake. (Photo: hanoitimes.vn)Hanoi (VNA) -Siam Cement Public Company Limited (SCG) signed an agreement with Vietnam Oiland Gas Group (PetroVietnam) to acquire the latter’s equity stake in Long SonPetrochemical Co. Ltd.
Under the agreement, SCGwill acquire 29 percent stake for more than 2.05 trillion VND (around 90.3million USD).
The transaction, madethrough SCG’s wholly-owned subsidiary in the chemicals business, Vina SCGChemicals Co Ltd, is expected to be completed by the end of June 2018, theThailand-based cement group said in a press release on May 28.
Upon completion of thedeal, SCG’s indirect stake in Long Son petrochemical project will increase from71 percent to 100 percent, of which Vina SCG Chemicals holds 82 percent andThai Plastic and Chemicals Public Co. Ltd holds 18 percent, SCG said.
Long Son petrochemicalproject, located in Long Son Petrochemical Industrial Park in Vung Tau city, isa key petrol and oil project of the Vietnamese government. Long Son isthe third petrochemical complex in Vietnam after Dung Quat oil refinery andNghi Son oil refinery and petrochemical complex.
Licensed in 2008 with aninitial investment capital of 3.7 billion USD, the project has raised upto 5.4 billion USD in investment. It is designed to produce up to 1.6million tonnes of olefin per year.
After the withdrawal ofVinachem, Qatar Petroleum International and now PetroVietnam, SCG is the soleinvestor of the project with a 100 percent equity stake.
The Thai group said thecommencement of engineering, procurement and construction activities for theproject would begin in the third quarter of 2018, with targeted commercialoperations in the first half of 2023.-VNA
VNA
