British Petroleum (BP) is planning to divest its investment in Phu My 3 Power Co natural gas-fired plant in Vietnam and transfer the ownership of this facility to Singapore’s SembCorp Industries Ltd, the Ministry of Industry and Trade announced Wednesday (December 24).
The petroleum giant currently holds 33.3 per cent equity stake in this power plant. Once the transfer of shares is completed, Petcolast, BP’s joint-venture with Petrolimex Vietnam, will be its lone direct investment left in Vietnam.
Phu My 3 power plant was built under the first BOT (build-operation-transfer) contract in Vietnam’s energy sector, and is located about 70 kilometers from Ho Chi Minh City. With more than 20 years of planned operation, it was built through a joint venture between BP, SembCorp and a consortium of Japanese investors (Kyushu Electric Power Co and Sojitz Corp). The plant has a total investment of $412.8 million. and since its operation in 2004, it has provided 47.22 billion kW electricity to the nation.
BP in Vietnam is also involved in the production and distribution of lubricants through BP-Petco, which was established in 2007.
For Sembcorp Industries Ltd, the power plant Phu My 3, where it holds a one-third stake, was its first investment in Vietnam. Since then Semborp has also invested in Dung Quat Economic Zone, which is also a BOT contract, which has an estimated investment up to $2 billion.
In 2013, Phu My 3 Power Co clocked a net profit of S$820 million, an increase of nine per cent compared to 2012.