City of Helsinki
University of Stellen Bosch
UK Trade and Investment
Svenska Handelsbanken AB (publ)
Public Private Partnership (PPP) Office, Government of Bangladesh
Public Investment Division, Ministry of Finance and Economic Planning, Ghana
Participate Haatschappij Vlaanderen
Vung Ro Petroleum Limited mandates StormHarbour as Financial Adviser
26 July 2012
Vung Ro Petroleum Limited has mandated StormHarbour to advise on the structuring and financing of the 169,000 bpd Vung Ro Refinery Project, in the Phu Yen province of the Socialist Republic of Vietnam.
Vung Ro Petroleum is the first wholly foreign-owned entity to have been granted an investment certificate by the Phu Yen Provincial People Committee of Vietnam approved by Prime Minister Statement No. 1586/TTg-DK dated 22 October 2007, authorizing it to process and produce petroleum and petrochemical products as well as to store, transport, export and import such products.
The Project is designed to produce over 7.2 million tons annually of refined and petrochemical products for the fast growing Vietnamese domestic market as well as for export.
The Project, located on the South Central Coast of Vietnam, will include a deep sea oil terminal and general cargo port.
Honeywell’s UOP and JGC of Japan have finalized the detailed feasibility studies for the process units and the utilities and marine facilities, respectively.
Vung Ro Petroleum Limited is in discussions with international contractors, including JGC and SK Engineering & Construction, in relation to the Engineering, Procurement, and Construction Contract. UOP will act as Managing Licensor.
Vung Ro Petroleum Limited aims to finalize separate contracts with BP and the Morgan Stanley commodities group for the supply of all of the crude oil requirements of the Project.
PV Oil (PetroVietnam) and Petrolimex have expressed interest in long term product off-take agreements for the domestic market. BP and the Morgan Stanley commodities group have each separately expressed interest in the off-take of products for export.
Vung Ro Petroleum Limited and parent Technostar Management Limited have been developing the Project since 2004. Equity investment will be contributed by Technostar Management’s strategic investor, Mr. Dmitry Arzhanov, owner of Transneftservices-S, which is one of the largest independent electricity retail suppliers in Russia with an annual turnover in the region of US$ 7 billion.
Debt financing is expected to be arranged with the support of export credit and development agencies.
Total Project costs are currently estimated at about US$ 3 billion.
Vung Ro targets project financial close in early 2013, in order to commission the Project in early 2016. It is intended that the first phase of the Project will incorporate the construction of a proprietary crude oil and refined product storage terminal and related marine infrastructure. This together with the forthcoming launch of Vung Ro’s platform for the supply of refined products into Vietnam should allow Vung Ro to start generating revenues well ahead of the full completion of the refinery and petrochemical complex.
StormHarbour is an independent global markets and financial advisory firm founded on the core values of integrity, trust, and global expertise with offices in New York, London, Copenhagen, Singapore, Hong Kong and Tokyo. StormHarbour’s Infrastructure Capital Team, based in Singapore, was formed by Marc-Antoine Thiriez, Jean-Christophe Levens, and Hugo Virag-Lappas. It advises developers, industrial companies and investors on the structuring and financing of projects in sectors including energy, utilities, oil & gas, natural resources, and transportation, as well as on existing infrastructure assets opportunities.
Marc-Antoine THIRIEZ, Managing Director, Infrastructure Capital
StormHarbour Securities (Singapore) Pte Ltd
T: +65 6631 9131 | firstname.lastname@example.org
The IPFA would like to thank StormHarbour for their kind permission to use this article.
IPFA Australia: Melbourne: Rethinking How Local Government Delivers Major Projects: Alternative Financing Models
IPFA UK: London: European Renewables
IPFA Europe: Bucharest: PPP in Romania - A Road Map to Partnership
IPFA Americas: New York: Challenges of Funding Transportation in the US
IPFA Australia: Sydney: Government Support Mechanisms for Renewable Energy Projects in Australia