Abu Dhabi’s Baron Point inks JVs with PetroVietnam
Dubai, July 25, 2017 (Argus)
Abu Dhabi-based Baron Point Petroleum Services (BPPS) has signed joint venture agreements with Vietnam’s state-owned PetroVietnam to finance, build and operate petroleum product pipelines and storage and to trade products.
The move comes as Vietnam pushes to increase its share in the lucrative oil products markets, and supports the country’s plan to maintain crude and oil product stocks equivalent to at least 90 days’ worth of imports by 2020.
Located on Phu Quoc Island, in the Gulf of Thailand, the terminal will supply and store crude and petroleum products, as well as bunker supplies, for southern Vietnam and the broader region.
“We are expanding by developing Phu Quoc Island and the southern Vietnamese supply channel in partnership with BPPS. This strategic development has attracted strong financial and energy market expertise and the resources needed to propel Vietnam’s growth,” said PVO chairman Nguyen Hoang Tuan.
BPPS is ultimately controlled by Royal Diamond Group, a company owned by Sheikh Khalifa Bin Khalid Bin Ahmed Al-Hamed, a member of the Abu Dhabi royal family. Al-Hamed holds a Slpc stake in BPPS, which will hold a 70pc stake in the terminal company.
The terminal is being developed in a phased approach with the first capital calls for the project being drawn over the next 60 to 90 days. A feasibility study on Phase 1 is complete and the developers are working on the engineering. Phase 1 is scheduled to be completed and fully operational by the third quarter 2018, contingent on final licensing being awarded by the Vietnamese government.
BPPS parent Baron Point is also forming a joint venture with PVO to establish a Dubai-based trading company that will sell in Vietnam and internationally, with a focus on the regional market. The company will be 80pc owned by Baron Point. PVO and Baron Point expect growth in offtake of refined fuel Vietnam, Cambodia, the Philippines, Myanmar, Indonesia and Singapore.