Total quits Vietnam venture

Total quits Vietnam venture

HANOI (DPA): French oil giant Total-Finaelf has backed out of its US$198.5 million joint venture to produce asphalt in Vietnam, citing investment difficulties, an executive said Friday.

The project along the southern coast saw Total take a 70 per cent stake, with state monopoly PetroVietnam and the Commercial, Production and Services Company each holding 15 per cent.

The official Vietnam News reported that Total Bitumen Vietnam had ceased operation and was preparing for license withdrawal.

A Total executive who asked to remain unidentified confirmed the report but declined to comment further.

Total, which merged with Fina in 1998 and acquired Elf a year later, was granted a license to produce asphalt in Ba Ria-Vung Tau province in December 1999 with chartered capital of $60 million, the newspaper said.