Abu Dhabi-based Baron Point Petroleum Services Company (Baron Point Petroleum) has reached an agreement with national oil and gas company PetroVietnam Oil Corporation (PV Oil) to set up a joint venture that will finance, build and operate petroleum product pipelines and storage space in the country and also source and trade petroleum products in the international markets.
Baron Point Petroleum is majority owned by Sheikh Khalifa Bin Khalid Bin Ahmed Al Hamed, in partnership with an accomplished team of senior managers and experts headed by managing partner and chief executive James Philip Coppola III, said the company in a statement.
Set to positively contribute to the improvement of southern Vietnam’s economy, and the petroleum supply chain, the $150 million Bonded Terminal System at Phu Quoc Island is strategically chosen to supply and store crude oil and refined petroleum products, as well as general bunker supply, catering to southern Vietnam and the broader Southeast Asia region.
Growth prospects for the Bonded Terminal System include offtake of refined fuel in markets such as Vietnam, Cambodia, the Philippines, Myanmar, Indonesia and Singapore, stated Baron Point Petroleum.
Located at Dat Do point, An Thoi town, Phu Quoc District, Kien Giang province, the area being developed spans approximately 570 sq km.
Drawing on its strategic placement in the global oil power-house center of Abu Dhabi, combined with its New York structuring expertise, Baron Point Petroleum provides PV Oil best in class skills, people and processes to support the national oil group’s growth.
The emirati firm undertakes the investment, build, and supply of the Bonded Terminal System, which includes allocations of national strategic reserves to benefit the Vietnamese people.
Developing in conjunction with regional and international strategic partners, the initiative will support Vietnam with top-tier international expertise and talent, said Coppola after signing the deal with Nguyen Hoang Tuan, the chairman of board of members of PV Oil.
"We are honoured to form a strategic relationship with PV Oil, and we will bring to bear the best of financial and energy market standards for the benefit of the Vietnamese people," he stated.
The Vietnamese team will conduct follow up meetings in Abu Dhabi with Sheikh Khalifa where knowledge transfer and development discussions will occur next month, he added.
On the new venture, Hoang Tuan said: "We are expanding by developing Phu Quoc Island and the southern Vietnamese supply channel in partnership with Baron Point Petroleum."
"This strategic development has attracted strong financial and energy market expertise and the resources needed to propel Vietnam’s growth," he added.