[Vnbiz] Glencore agrees to change tainted fuel in Vietnam: official

[Phan, Tai]

Glencore agrees to change tainted fuel in Vietnam: official Tue Sep 12, 4:16 AM ET
 


HANOI (AFP) - The Singapore-based subsidiary of Swiss oil and resources company Glencore will change million litres of acetone-tainted fuel sold in Vietnam, an official has said. 

 
The company sold 19.8 million litres of fuel tainted with acetone to two Vietnamese companies, state-owned Petrolimex and the Military Petrol Corporation, for 14.5 million dollars, state media said.

"Glencore officials accepted last week to (take back) the oil before the end of the month, at the company's own cost," Petrolimex deputy director Dang Duy Quan said.

"They also promised to deliver the equivalent quantity of clean (fuel)," he told AFP.

"Glencore experts are currently investigating to understand the origin of the matter and find appropriate solutions for Vietnamese customers."

Executives from Glencore Singapore Ltd, a subsidiary of Switzerland's Glencore International AG, came to Vietnam to discuss the issue last week, state media said.

The tainted fuel, distributed in several provinces of the communist nation, caused widespread engine problems for motorbikes and cars, prompting a country wide investigation.

Until Vietnam's first refinery comes on stream in 2009, the country will remain dependent on costly imports for all its refined petroleum products even though it is a significant exporter of crude oil.

Glencore officials in Singapore were not immediately available for comment.