State-owned Vietnam National Oil & Gas Group’s (PetroVietnam) subsidiary Binh Son Refining and Petrochemical (BSR) has awarded a front end engineering design (FEED) contract to Amec Foster Wheeler for the Dung Quat oil refinery in Quang Ngai province.
Under the two-year contract, Amec Foster will be responsible for the optimization of the refinery configuration, coordination of licensors, design new units and upgrade the existing units.
The contract also covers establishing the optimum project definition to ensure low cost implementation of the project as well as increase supply of petroleum products in compliance with the Euro 5 standard.
Amec will also support contracting activities of BSR for the next phase of the project.
The contract is part of the $1.8bn expansion to boost the annual processing capacity of the refiner by 30% to 10 million tons from current 6.5 million tons.
The expansion plan also includes installation of crude pre-flasher, vacuum distillation unit, a visbreaker, mercury removal unit and other facilities.
Upon completion of the expansion project by 2017, the refinery will have capacity to process Middle East sour crude oil and sweet crude oil.