The PetroVietnam Insurance Corp (PVI) on Thursday signed contract to fully insure Dung Quat Oil Refinery. PVI will provide policies for all of the refinery’s assets, transport equipment installation costs and staff from 2007-2012.
The company did not disclose the exact financial terms of the contract, though wrote in a press release that "the best insurance schemes will be provided to Dung Quat, at competitive premiums and conditions."
The US$2.5-billion Dung Quat Refinery is expected to be operational in 2009 and provide one third of the nation’s demand for refined petroleum products.
Pham Hoai Nam, director of PVI’s Legal Department, said this is one of the biggest contracts the company has signed. PVI also insures Vietsovpetro oil rigs in a deal worth around $5 billion.
Earlier this month, PVI reported a revenue of VND1.2 trillion ($75 million) for the first six months of the year, or 65 per cent of the company’s 2007 target.
Some investment funds and foreign insurance firms have expressed interest in becoming a strategic partner in PVI. The company plans to select strategic partners during a special shareholders’ meeting to be held on July 19, said Nam.
