The Vietnamese government has allowed a Hong Kong-based group to conduct a feasibility study for a $1.5-billion oil refinery in central Vietnam, an official said.

“The Prime Minister has allowed Hong Kong investors to conduct a detailed study for the refinery project,” said Nguyen Ngoc Toan, deputy director of the Nhon Hoi Economic Zone in the central province of Binh Dinh.
Toan said initial output of the refinery, financed by the Hong Kong General Association of International Investment, would be two million tonnes per year, or 40,000 barrels per day (bpd) and be gradually raised to 10 million tonnes per year.
“If all goes well, the refinery would be operational by 2010,” Toan said.
The plant would use crude oil imported from the Middle East instead of local crude, which is controlled by state oil monopoly PetroVietnam, state media reports have said.
Most of Vietnam’s 360,000 bpd production has been earmarked for three Petrovietnam-backed refinery projects, which have been on the planning boards for years.
A lack of refineries now means that southeast Asia’s third-largest crude producer has to import all its fuel.