Official: Russia’s Gazprom Neft, Petrovietnam halt Dung Quat talks

MOSCOW, May 4 (PRIME) -- Russian oil company Gazprom Neft has suspended negotiations with state holding Petrovietnam to acquire a stake in Vietnamese refining plant Dung Quat from Binh Son Refining and Petrochemical, Russian Trade representative Maxim Golikov told PRIME in an interview published on Wednesday.

“As far as I know, these negotiations have been suspended so far. The problems is that several incentives by the Vietnamese government are crucial for successful cooperation in this project,” Golikov said.

He said that the plant has a low efficiency and only import duties enable it to compete with foreign producers. Vietnam will likely retain the duty, Golikov said.

Gazprom Neft plans to acquire a Dung Quat stake after its initial public offering, Golikov said.

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