A high feasible project in Hoa Tam industrial zone

12:52 | 11/03/2013
Petro Vietnam Oil Stockpile Company Ltd (PVOS), a joint venture between Korean firm SEK and PV Oil (a member of Vietnam Oil and Gas Group), is a provider of underground oil caverns built specifically to accommodate the needs of the oil and gas industry for commercial and production reserve, national stockpiling and international oil trading purposes.

a high feasible project in hoa tam industrial zone
Detailed view of Bai Goc deep seaport

Over two years beginning in 2010, PVOS carried out the pre-feasibility study of the port and storage project at Hoa Tam IZ. It began looking at the geology and construction sites for the deep water seaport and storage project within Hoa Tam Industrial Zone (IZ) to assess whether the site was suitable for a large- scale underground storage cavern and would be feasible in conjunction with the planning of the industrial zone itself.

Hoa Tam has been designed to house industrial operations with great demand for petroleum storage, so this suitability was critical to the potential success of Hoa Tam. Our preliminary study shows that the project is feasible and aligned with PVOS’s development strategy in Vietnam. PVOS has committed to be a strategic partner with Hiep Hoa Phat JSC, the developer of Hoa Tam IZ to be a secondary investor in developing the underground storage cavern and port project in Hoa Tam IZ.

On June 17, 2011, PVOS submitted the document No. 243/PVOS –E&P applied for an investment certificate for a crude oil and petroleum products storage project in the Hoa Tam Industrial Zone to the Phu Yen Economic Zone Management Board. This project consists of an underground storage cavern system with 3.1 million cubic meters of storage capacity, an export terminal for vessels up to 80,000 DWT and a single point mooring system to accommodate vessels up to 300,000 DWT for the purpose of development and operation of industrial terminals and tank farms ensuring the importing and exporting of crude oil and petroleum products.

During the implementation of the 1/2000 master plan of the Hoa Tam industrial zone and Bai Goc deep seaport project, the contributions of PVOS and its Korean strategic partners have been invaluable in enhancing the project plan to bring it to world-class standards.

PVOS has worked with Vung Ro Petroleum Company Limited (VRP), the principle investor in the Vung Ro Refinery project, in the past. Vung Ro is considering relocating the Refinery to Hoa Tam Industrial Zone and has recently garnered the approval of the Prime Minister. On July 26, 2011, VRP signed a Memorandum of Understanding (MOU) with PVOS for the purpose of studying investment and construction of the crude oil and petroleum products storage project at the Hoa Tam IZ, of which VRP has expressed its desire to become a strategic partner. They are looking for a 34 per cent equity stake.

Thus, we have committed to strategically cooperate with Hiep Hoa Phat to develop the underground oil storage cavern, single point moorings and liquid jetties as key components of the Hoa Tam industrial zone and Bai Goc deep seaport. VRP has received approval for the project’s relocation to Hoa Tam by the Prime Minister and, in addition, has become a secondary investor in Hoa Tam. These are good signals for the initial development of Hoa Tam as well as PVOS’s crude oil and petroleum products storage project. VRP is dedicated to ensuring its refinery development to be in legal compliance and contribute to the success of sustainable industrial development in Phu Yen province.

ASSESSMENT OF NIKKEN SEKKEI CIVIL ENGINEERING LTD

The value chain establishment

Nikken Sekkei Civil Engineering Ltd. (NSC) is a comprehensive consultancy firm under the Nikken Group, a leader in the design industry. Since its inception 111 years ago Nikken Sekkei has worked on more than 20,000 projects across a wide variety of construction, planning, and environmental projects across Southeast Asia. In Vietnam, NSC has been instrumental in designing a number of high-profile urban planning and industrial zone projects including the Hoa Tam Industrial Zone in Phu Yen Province and currently under development by Hiep Hoa Phat Joint Stock Company (HHP).

Hoa Tam is an excellent location – conveniently situated near major transportation infrastructure including railways, sea and airports and the national highway. It is a fully integrated and comprehensive industrial zone designed to become a regional production and trading hub.

Conceived with the idea that "A truly successful economic hub creates new value chains to support the development of Society, Economy and Environment equally," Hoa Tam is uniquely capable of providing infrastructure, facilities and services vital to long-term regional growth. Building on the value chain concept, Hoa Tam IZ is looking for a wide-range of tenants -- heavy industries to high-tech, foreign enterprises or Vietnamese -- to create economic development while improving the country’s technological education and training. Add to that energy self-sufficiency mated with industrial and urban development and Hoa Tam’s beautiful landscaping creates something both productive and in harmony with the environment to build a sustainable industrial zone that will be a source of local pride.

Sustainable development and the “New Value Chain” at Hoa Tam Industrial Zone

a high feasible project in hoa tam industrial zone

ROYAL HASKONINGDHV’S EVALUATION:

Bai Goc Deep Seaport is of high potential

As an independent, worldwide engineering consultancy firm founded in the Netherlands in 1881, Royal HaskoningDHV is a global market leader in the development of maritime port and transport infrastructure and integrates highly sophisticated planning, design and implementation expertise, including contractual, supervision and financial skills. Royal HaskoningDHV views the Hoa Tam Industrial Zone (IZ) by Hiep Hoa Phat as a feasible project which would be a great growth driver for the economy of Phu Yen Province.

The Bai Goc deep seaport is the designated port for the Hoa Tam Industrial Zone and Special Economic Zone (to the north of the port). It will accommodate cargo flows to and from these Zones as well as serve potential transhipment and strategic storage cargoes.

The Bai Goc port location has potential number of key strengths including its natural deep water. Under the detailed planning the predicted throughput of the Bai Goc Deep Sea Port will grow to approximately 15.8 million tons by 2020. The port consists of 2 parts: an SPM for the import of crude oil by vessels up to 300,000 DWT and an export terminal with berths for vessels ranging from 3,000 DWT to 80,000 DWT in phase 2.

SGT

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