Opportunity for BSR to access long-term, quality crude oil sources

(Baoquangngai.vn)- On August 17, Binh Son Refining and Petrochemical Joint Stock Company ( BSR ) held a workshop to exchange professional knowledge on trading and transporting crude oil/intermediate materials with Vietnamese and international partners.

Attending the workshop were BSR leaders, BSR's professional departments, and the presence of domestic crude oil/crude oil supply service suppliers PVOIL, and foreign suppliers such as Chevron, Novel, Freepoint, Meridian and McQuilling.

Conference scene

At the workshop, Head of BSR Production Control Board Nguyen Don Liem said that currently, Dung Quat Oil Refinery has a crude oil demand of about 148 thousand barrels/day according to design, equivalent to 6.5 million tons of crude oil/year. The crude oil demand of the Factory in the period of 2024 - 2028 is about 160 - 165 thousand barrels/day (optimally increasing capacity), equivalent to 4.8 - 5.1 million barrels/month, of which imported crude oil is about 1.5 - 2.6 million barrels/month.

Currently, the crude oil basket supplied to Dung Quat Refinery includes 9 types of domestic crude oil and 14 types of imported crude oil. In addition, BSR has also evaluated 33 other types of crude oil that can be supplied to Dung Quat Refinery.

BSR Board of Directors chaired the Workshop.

BSR leadership chaired the workshop.

After 2028, when BSR completes the upgrade and expansion of Dung Quat Oil Refinery, the plant will have a capacity of 171 thousand barrels/day (equivalent to 5.3 million barrels/month; the proportion of imported crude oil will be about 45 - 100% (equivalent to 2.4 - 5.3 million barrels/month).

Currently, PetroVietnam Oil Corporation (PVOIL) is the largest crude oil supplier to BSR. PVOIL supplies crude oil to BSR under chain contracts, long-term contracts and trip contracts.

BSR Chairman Nguyen Van Hoi spoke at the workshop.

In the first 6 months of 2023, PVOIL supplied BSR with a total of 28.3 million barrels of crude oil of all kinds (equivalent to 156,137 barrels/day at Dung Quat Refinery's capacity of 106%), including 7.4 million barrels of imported crude oil and 20.9 million barrels of domestic oil. The ratio of Vietnamese crude oil/imported crude oil is 74%/26%. Dung Quat Refinery is processing crude oils such as Bach Ho, Rong, Su Tu Den, Te Giac Trang, Rang Dong, Dai Hung, Hai Thach, Song Doc, Ruby (domestic); WTI Midland, Azeri, Bu Attifel (imported).

In the last 6 months of 2023, PVOIL plans to supply BSR with about 20.6 million barrels of various types of oil, including imports.

Mr. Nguyen Duong Quang - Head of PVOIL Crude Oil Division commented on the crude oil supply to BSR

PVOIL representatives participated in the discussion at the workshop.

Nguyen Duong Quang, Head of PVOIL Crude Oil Division, said that PVOIL has negotiated with oil owners to create conditions for BSR to have the opportunity to buy maximum Vietnamese crude oil in term oil sales and trips. Support BSR to negotiate long-term framework agreements to buy White Rhinoceros oil with oil owners. In addition, PVOIL provides maximum support to BSR in flexible oil loading arrangements according to the actual capacity of Dung Quat Oil Refinery.

In the period of 2024 - 2035, PVOIL will provide BSR with maximum domestic and imported oil. In 2024, it is expected to supply about 159 thousand barrels/day. However, domestic crude oil production is showing a downward trend, causing difficulties in supplying crude oil to Dung Quat Refinery. In addition, PVOil also introduced a number of new types of oil that will be put into exploitation and commercial sale from 2025, these types of oil can partly offset the decrease in output of some current types of oil.

Representatives of crude oil suppliers around the world gave speeches.

On this occasion, leaders of BSR and PVOIL also discussed and proposed solutions to purchase maximum Vietnamese oil to supply to BSR; discussed regulation and coordination in oil loading work.

BSR Chairman Nguyen Van Hoi hopes that crude oil suppliers will have the most general view of BSR's potential and advantages to provide long-term crude oil sources for Dung Quat Refinery, especially after the Plant completes the upgrading and expansion project.

At the workshop, Chevron representative, Mr. Lim Meng Tong said: Chevron's crude oil production capacity is 1.44 million barrels of oil per day, mainly in the US, Canada, African countries (Nigeria, Angola, Republic of Congo, Guinea, ...). Mr. Lim Meng Tong also analyzed the political and geo-economic challenges in the world affecting crude oil exploitation of oil companies and world crude oil trade.

Representatives of crude oil suppliers/crude oil supply service providers Freepoint, Meridien, McQuilling also gave presentations on crude oil supply capacity as well as cooperation opportunities with BSR in the future.

Concluding the workshop, BSR General Director Bui Ngoc Duong thanked the crude oil suppliers for their quality sharing and discussions. After today's workshop, BSR hopes to promote cooperation with crude oil suppliers such as Chevron, Novel, Freepoint, Meridian, McQuilling. Future cooperation will open up opportunities for BSR to access long-term, quality crude oil sources.

D.C-PV

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