Summary Sheet Long Son Refinery Project

Long Son Refinery

Summary Sheet Long Son Refinery Project

Overview Main Parameters

Purpose: To produce LPG; Unleaded Gasoline; Jet-A1; Diesel; FO; Petrochemical products, Sulphur, Asphalt Location: Long Son Petroleum Industrial Zone, Long Son commune, Vung Tau city, Ba Ria - Vung Tau province, Vietnam Owner: Petrovietnam (PVN) Shareholders structure: PVN: 100% Investment type: Joint venture amongst PVN and foreign partners (PVN will hold around 25%) Investment Capital: US$ 8,000 million (rough estimation) Scheduled Start-up: 2018-2025 Capacity: 10 MMTA (200,000 bpsd) Maximum foreign equity ownership: 75%

Total area of the project site: 810 ha including future expansion Crude: 100% imported crude Technology: processing State-of-the-art technology in deep

Products: Petroleum fuels to fulfill the domestic market demand and feedstock for petrochemical industry. Product specification: minimum equivalent with EURO IV

Current Status

Economic Efficiency

On-going works

Pre Feasibility Study has been done Seeking for potential partners who are capable of supplying long term stable crude oil; or rich experiences in building and operating refinery; or financing capability

Under development
Schedule

Investment

and construction 2016 -2020 Expected time of commercial operation: 2020.

Incentives Competiveness

Infrastructures and utilities including road, power, water, communication system to the fence of Refenery. Corporate Income Tax: 0% for 4 years following the first year of operation; 5% for the next 9 years; 10% for the remaining 17 years

Nearby the biggest petroleum fuel consumption market of Vietnam (southern market) which takes 60% of demand.

Advantageous in transportation in both domestic and international seaway transportation for crude import and products distribution

Import tariff: exempt from import tax for crude oil; exempt from import tax for immachinery and equipment imported in the complete production line which are not able to be produced domestically and created fixed assets

All utilities are available at fence of the refinery with favorable fee that applied to other projects in area Capable to share some common facilities with Southern Petrochemical Complex such as: marine facility, power generation, other utilities and technical services

Exemption from VAT for machinery, equipment, material imported in the complete production line which are not able to be produced domestically and created fixed during construction phase

Strongly supported by Vietnamese Government and Petrovietnam Rapidly increased demand of the petroleum products in Vietnam. As officially forecasted, the average growth of fuel consumption in Vietnam up to 2025 shall be 6.7% per annual. Vietnam should import around 11 million tons of petroleum products in 2015 and 13.6 million tons in 2020.

06 months after EPC award, the owners can build up their import, distribution facilities and can distribute the Products based on import products by its own distribution networks, with the volume up to 50% of refinery production, provided that the Project complies with the Government regulations