BSR signs agreement with PVOIL and PVOSN on implementing linked chains and crude oil supply for Dung Quat Refinery

On January 16, 2024, in Quang Ngai, Binh Son Refining and Petrochemical Joint Stock Company (BSR) held a ceremony to sign an agreement on implementing linked chains for crude oil supply, processing, market expansion, and consumption of gasoline and oil products in Vietnam and abroad between BSR and PVOIL; and a memorandum of understanding on crude oil supply for Dung Quất refinery between BSR, PVOIL, and PVOSN.

Attending the ceremony were Mr. Bui Minh Tien, Member of the Group's Board of Members of Vietnam Oil and Gas Group (Petrovietnam); Mr. Le Xuan Huyen, Vice President in charge of the Petrovietnam Executive Board.

On behalf of the partners, there were Mr. Cao Hoai Duong, Chairman of the Board of Managament of PVOIL; Mr. Doan Van Nhuom, President & CEO of PVOIL; and representatives of leaders of subsidiaries under Petrovietnam and other partners.

On behalf of BSR, there were Mr. Nguyen Van Hoi, Chairman of the Board of Management; Mr. Bui Ngoc Duong, President & CEO; and representatives of the Board of Directors, the General Director's Office; the Plant Director's Office; leaders of relevant functional departments; and key officials of BSR.

In the 15 years since its commissioning, under the close direction of Petrovietnam, the support of the strong motherland of Quang Ngai; and the unity and efforts of the workforce, BSR has achieved certain successes, with the milestone of 100 million tons of oil processed at Dung Quat refinery and the realization of the Petrovietnam's directive on the chain connection policy through strengthening cooperation between BSR and units in the industry, BSR always strives to be a pioneer and leader in the field of refining and petrochemicals in Vietnam.

Speaking at the ceremony, BSR President and CEO Bui Ngoc Duong said: In the supply chain of Petrovietnam from extraction, processing, and product distribution, PVOIL and BSR are important units to implement the Petrovietnam's general strategy in building and strengthening cooperation relationships, leveraging the strengths of each unit to create advantages and develop the Petrovietnam's supply chain.

Mr Bui Ngoc Duong - President and CEO of BSR, spoke at the ceremony.

Building on that spirit, since the commercial operation of Dung Quất refinery in 2009, PVOIL has been accompanying and cooperating with BSR through many difficult times, when the market fell into crisis due to the sharp decline in crude oil prices in 2014 - 2018 - 2020, differences in product import tax policies, the sharp decline in Bạch Hổ crude oil production, limited replacement baskets, import tax policies for crude oil, Covid-19, and the sharp decline in global and Vietnamese gasoline and oil consumption demand. In addition to the support of PVOIL, PVOIL Singapore, a subsidiary of PVOIL, has played an important role in the supply of imported crude oil to Dung Quất refinery since 2012 to date with a total of 33/143 imported crude oil lots of the plant, with a total volume of nearly 22 million barrels of crude oil, the second largest supplier to Dung Quất refinery.

“This is also an important milestone in the process of cooperating in a comprehensive strategic partnership, raising value and efficiency for all parties in chain linking cooperation under the direction of the Vietnam Oil and Gas Group,” BSR CEO Bui Ngoc Duong emphasized.

Mr. Doan Van Nhuom, President and CEO of PVOIL, spoke at the ceremony.

In his speech, PVOIL President & CEO Doan Van Nhuom emphasized the importance of the agreement between PVOIL and BSR. He said that the agreement will create a strong partnership between the two companies and help them to develop together into the international market. Mr Doan Van Nhuom affirmed that PVOIL will provide maximum support to BSR in the work of storing and distributing products. The linkage of PVOIL and BSR will be a force to develop together into the international market. PVOSN, a subsidiary of PVOIL, will take on the source of crude oil and commit to providing it to BSR. PVOIL will cooperate with other businesses to directly blend and supply intermediate products to BSR in the coming time.

Mr Le Xuan Huyen – Vice President of Petrovietnam spoke at the ceremony.

In his speech at the signing ceremony, Mr. Le Xuan Huyen, Vice President in charge of the Petrovietnam Executive Board, emphasized: “Petrovietnam highly appreciates the cooperation on value chain linking in the activities of providing domestic crude oil, processing and consuming products between BSR and PVOIL, as well as enhancing the capacity to purchase imported crude oil with the key role of PVOSN in supporting BSR and PVOIL in the context of most oil fields/blocks currently having declining natural production.

“I believe that the cooperation of the two units will be the foundation for leveraging each other's strengths, contributing to improving competitiveness to continue to ensure a stable supply of raw materials, maintaining and increasing market share for the supply of gasoline and oil products for the domestic market, and enhancing the position/role of BSR and PVOIL in contributing to ensuring national energy security in the future. This is the foundation, the important factor for BSR and PVOIL to continue to increase production, creating growth potential in the coming years,” Mr. Le Xuan Huyen, Vice President of Petrovietnam, assessed.

In the presence of the leadership of Quang Ngai Province and Petrovietnam, Mr. Bui Ngoc Duong, President and CEO of BSR, and Mr. Doan Van Nhuom, President and CEO of PVOIL, signed a cooperation agreement on the implementation of value chain linking activities for the supply of crude oil, processing, market expansion, and consumption of gasoline and oil products in Vietnam and abroad between BSR and PVOIL.


Mr. Nguyen Viet Thang, Vice President of BSR; Mr. Nguyen Dang Trinh, Vice President of PVOIL; and Mr. Yomi Benson, President & CEO of PVOSN, signed a memorandum of understanding to provide crude oil for the Dung Quất Refinery and Petrochemical Complex.

In addition to the long-term cooperation between the two units, the cooperation of other units such as VSP, PVEP, Biển Đông POC, Hoàng Long JOC, Thăng Long JOC, Cửu Long JOC, JVPC and PVTrans is also important to bring crude oil and raw materials to be processed into gasoline and oil products at BSR – Dung Quất Refinery and Petrochemical Complex./.

https://petrovietnam.petrotimes.vn/