Saudi Aramco, the national oil and gas firm of Saudi Arabia, may enter into a joint venture with energy giant PTT Plc in a US$22-billion oil refinery and petrochemical complex in central Vietnam.
Atikom Terbsiri, a senior executive vice-president of PTT, said the feasibility study for the new chemical complex was submitted for approval from Vietnamese Prime Minister Nguyen Tan Dung last Friday.
The project is located in Binh Dinh province, where the oil refinery would be built with a capacity of 400,000 barrels per day, aromatics production of 2 million tonnes per year and olefin output of 3 million tonnes per year.
If the project is approved, construction is expected to begin in 2016, with the plant operational in 2022.
"Saudi Aramco is highly likely to be our strategic partner for this project, as it offers full integration of the crude oil supply and also a logistics system," said Mr Atikom.
If a deal is reached, Saudi Aramco and PTT will each hold a 40% stake, with the remaining 20% held by one or several Vietnamese partners.
PTT Exploration and Production Plc (PTTEP), a subsidiary of PTT, is planning to fund nearly $1 billion to develop a liquefied natural gas (LNG) and production terminal in Mozambique's offshore gas block in Rovuma Area 1.
PTTEP chief executive Tevin Vongvanich said the budget would be solely from PTTEP, spanning the next six years.
PTTEP has an 8.5% share in the Mozambique field through its $1.9-billion acquisition of Cove Energy two years ago. Its partner Anadarko finished the exploration for reserves of natural gas.
He said Rovuma Area 1 has high potential for operating a liquefied natural gas field with a yearly output of nearly 100 million tonnes. Initially it will begin with output of 10 million.
The block is operated through a consortium comprising Anadarko, which owns 26.5%, Mitsui E&P with 20%, Mozambique's state oil firm Empresa Nacional de Hidrocarbonetos with 15%, BPRL Ventures Mozambique with 10%, Beas Rovuma Energy Mozambique Ltd with 10%, ONGC Videsh with 10% and PTTEP at 8.5%.
The block is estimated to see recoverable resources of 45 to 70 trillion cubic feet. It already has LNG purchase contracts from China, India and Thailand for a combined 6 million tonnes per year.
PTTEP's project in Algeria is expected to start crude oil production by the end of this year, pumping 20,000 barrels per day.
Its Montara gas field in Australia will cut crude oil output from 30,000 bpd to 22,000 bpd due to a technical disruption.
PTT shares closed yesterday on the SET at 352 baht, down two baht, in heavy trade worth 1.5 billion baht.