Khanh Hoa (March 26, 2010) – A ceremony to welcome a new supertanker to Vietnam, the Van Phong 1, was held by the Vietnam National Petroleum Corporation (Petrolimex) at the Van Phong Bonded Warehouse on My Giang Island in Ninh Phuoc commune, Ninh Hoa district, Khanh Hoa province. The modern oil tanker is also the country’s largest so far.

Van Phong 1 oil tanker

Deputy Minister of Industry and Trade Nguyen Cam Tu, Vice Chairperson of the Khanh Hoa provincial People’s Committee Nguyen Thi Thu Hang, Chairman of the Ninh Thuan provincial People’s Committee Nguyen Chi Dung, Chairman of the Phu Yen provincial People’s Committee Pham Dinh Cu and representatives from State agencies, business partners and the media attended the ceremony.

The 105,636 DWT oil tanker with a capacity of 125,204 m3 was built in the Republic of Korea at a cost of 44 million USD. It helps raise Petrolimex fleet’s combined tonnage to 453,000 DWT. The fleet is now capable of transporting 80% of Petrolimex’s petrol imports to Vietnam.

Each year, the tanker will transport roughly 1.2 million m3 of petrol, saving Petrolimex from between 15-18 million USD in hard currency by not having to lease foreign ships as it did in the past.

As part of its development strategy, Petrolimex will use the new tanker to make full use of the Van Phong deep-water port, the Van Phong bonded warehouse and the South Van Phong oil refinery and petrochemical complex, as it is eager to turn the zone into an international petrol transshipment area to help stabilise petrol prices on the domestic market when global oil prices fluctuate erratically.

“The Van Phong 1 will help Petrolimex to secure long-term purchasing contracts with oil giants and import a large amount of oil to maintain a stable supply for the domestic market. It will also help the firm to save on transport costs, resulting in higher profits and a lower price at the pumps”, said the Chairman of Petrolimex’s Management Board Vu Ngoc Hai.

“This is also the first step in the firm’s strategy to penetrate the global petroleum transport market and expand and professionalise its operations.”

At the ceremony, Vice Chairwoman of Khanh Hoa provincial People’s Committee Nguyen Thi Thu Hang praised contributions by Petrolimex in general and the Phu Khanh Petroleum Company in particular to the province’s development.

“This oil tanker not only helps Petrolimex ensure supplies, but will help it control petrol prices on the domestic market, increase our profits and make full use of Van Phong Bay. It will also turn Van Phong into an oil and petrol transshipment port in the world and contribute more to the provincial budget,” she said.

She asked local officials to create the best possible conditions for Petrolimex to raise its production, expand its business, carry out further investment projects and put the Van Phong bonded warehouse into operation soon to serve the tanker and launch other services.

Deputy Minister of Trade and Industry Nguyen Cam Tu also praised Petrolimex’s efforts to develop in line with the Party’s and the State’s guidelines.

“Today underlines Petrolimex as the country’s main player when it comes to regulating prices and maintaining a stable petrol supplies on the domestic market. The tanker, together with the bonded warehouse and the oil refinery and petrochemical complex, will not only help to develop the local economy but will also contribute considerably to the national petroleum industry, enable the government to stabilise the macro-economy and ensure social welfare and sustainable growth,” said Tu.

Petrolimex has shipped a total of 5.5 million m3 of diesel oil since 2002, contributing more than 6.5 trillion VND to the Khanh Hoa provincial budget. In 2009 alone, the firm contributed 2.1 trillion VND, over 30% of the province’s revenue.

The Van Phong bonded warehouse is the country’s first and largest oil depot in the country. It has a total designed capacity to store 1 million m3 of petrol. After the first stage of construction, which is due to be finished early next year, the warehouse will be capable of storing 500,000 m3 of assorted petrol and oil products. The warehouse’s four piers can accommodate large oil tankers of up to 150,000 DWT.

Petrolimex’s profile:

Petrolimex is a state-owned enterprise. It has registered to operate in six business areas, in which trading petrol is its core business. The other areas include transporting petrol, producing petrochemical products such as lubricating oil, grease, bitumen and chemicals. It also produces gas for civil and industrial use and is involved in engineering, the design and construction of petroleum projects, and insurance and several other commercial services.

Petrolimex focuses mainly on the domestic market. Together with 10 other petroleum import-export businesses, the corporation supplies many oil based products for the country’s socio-economic development, ensuring national defence and security and a sufficient supply for daily consumption. 41 out of its 67 subsidiaries trade petrol and oil products in 62 out of the 63 cities and provinces nationwide.

As for retail petrol services, out of 10,000 petrol stations nationwide, more than 1,900 belong to Petrolimex. The firm now also reaches more isolated and remote areas.

Since it was set up in 1956, Petrolimex has played a key role in ensuring the petrol and oil supplies and always fulfills its social responsibilities.

In addition to the domestic market, Petrolimex does business in other regional countries in the form of export and border gate-to-border gate transport and has set up an one-member limited liability company in Singapore, the world’s large petroleum centre.

It was also the country’s first retail petrol trader to accept payment by Flexicard, a prepaid and debit card jointly issued by Petrolimex and the GP Bank and also offers banking services at petrol stations nationwide./.