BSR's journey of value creation

Binh Son Refining and Petrochemical Company Limited (BSR) was established on May 9, 2008, and on July 1, 2018, it officially switched to operating as a joint stock company with the new name Binh Son Refining and Petrochemical Joint Stock Company. Over the past 15 years, BSR has achieved many achievements and created new values and standards for the petrochemical industry.

Great contribution to the budget, ensuring national energy security

The Dung Quat Oil Refinery (NMLD) construction project has a total investment value of 3.054 billion USD and produced the first commercial product on February 22, 2009. After 15 years of establishment and development, up to now, Dung Quat Oil Refinery, managed and operated by BSR, ensures about 30% of the domestic petroleum supply and contributes to ensuring energy security for Vietnam. At present, the company has processed more than 94 million tons of crude oil, produced and sold more than 86 million tons of products to the market, with revenue reaching nearly 1.7 million billion VND, after-tax profit of more than 44 trillion VND and paid to the state budget more than 207 trillion VND (equivalent to nearly 9 billion USD) - nearly 3 times the total investment of the project.

Over the past 15 years, BSR has contributed about 207 trillion VND to the state budget, nearly 3 times the investment capital.

In 2022, BSR will pay more than 19 trillion VND to the state budget. Mechanically, BSR's contribution to the state budget is equal to 150% of the budget revenue of Thua Thien - Hue province; 78% of Da Nang city; 72% of Quang Nam province and 115% of Binh Dinh province. In Quang Ngai province alone, where Dung Quat Refinery is headquartered, BSR accounts for 56% of the province's total budget revenue.

Dung Quat Oil Refinery creates the most important driving force to accelerate growth, is a "magnet" to attract investment, as well as a "hinge" to change the economic structure of Quang Ngai. Chairman of Quang Ngai province Dang Van Minh affirmed: "Dung Quat Economic Zone is the growth nucleus of Quang Ngai province with the heart being Dung Quat Oil Refinery, which has contributed significantly to turning Quang Ngai province from a poor, purely agricultural province with a low starting point economy, and a budget completely dependent on the support of the Central Government from 2009 onwards, into a province with large revenue sources with an economic scale of 121,668 billion VND".

In addition to its large contribution to the budget, Dung Quat Refinery also plays an important role in ensuring national energy security. At the end of 2022, when the Vietnamese petroleum market has many fluctuations, the role of Dung Quat Refinery is extremely important when it always operates stably at high capacity, at times at 112% - the highest in its operating history, contributing to stabilizing the demand for the domestic petroleum market when the supply is seriously lacking.

Training experts, scientific research for development

At the 15th anniversary of BSR's founding (May 9, 2023), Petrovietnam General Director Le Manh Hung commented that BSR's personnel are not simply workers but experts who have mastered petrochemical refining technology and risen to the top in the region.

“The collective of employees is a valuable asset that the company has. Therefore, Binh Son Refining and Petrochemical Joint Stock Company will continue to build, spread and develop corporate culture associated with the Petrovietnam Cultural Regeneration Project to arouse and foster the pride and solidarity of oil refinery workers for the sustainable development of Petrovietnam”, BSR General Director Bui Ngoc Duong further affirmed.

In the past 5 years, BSR has faced many difficulties and challenges. One of the most difficult times was when the world oil and gas market as well as Vietnam faced a double crisis due to the Covid-19 pandemic and a sharp drop in oil prices. There was even a time when oil prices fell to negative levels, and those who had signed previous purchase contracts had to pay the seller because of inventory problems and no place to store them - something that had never happened in the history of world oil.

The operating engineers at BSR are considered to have become oil refining experts.

In that context, BSR's management work once again demonstrated its importance. BSR's leaders calculated the market to come up with optimal solutions such as operating the factory at a minimum level, optimizing the product structure, mobilizing warehouses outside the factory to increase product storage capacity, issuing policies to stimulate product sales, actively negotiating with partners to swap or extend the progress of receiving crude oil batches, avoiding high crude oil inventories... These solutions helped BSR overcome the crisis period, restore production and business immediately after the market gradually recovered. At the same time, BSR correctly calculated the market's peak, the peak of the price difference between input materials and output products.

To solve the difficulties of market fluctuations, risks of raw material shortages, energy competition... in the field of petrochemical refining, BSR chooses scientific research as a strategic solution in optimizing capacity, ensuring safe and stable production, reducing energy consumption and ensuring environmental factors, improving production and business efficiency. The most outstanding result in scientific research work at BSR in recent times is the cluster of works "Solutions for applying science and technology to optimize the production process of Dung Quat Oil Refinery to improve the operational efficiency and competitiveness of BSR". The cluster of works was honored to receive the State Prize for Science and Technology from the President for its contribution to the cause of building socialism and defending the Fatherland.

The complex also contributed to reducing the factory's energy consumption index (EII) from 118% in 2014 to 103-106% in 2018 and 2019 (according to calculations, a 1% reduction in the EII index saved about 2.6 million USD/year). The total production cost of the factory gradually decreased from 7.1 USD/barrel of oil in 2014 to 4.9 USD/barrel of oil in 2019 (saving about 24-43 million USD/year). The total economic efficiency of the complex as of December 31, 2019 was 4,270 billion VND.

In the scientific research movements, the 1 Million Initiatives Program launched by the Vietnam Oil and Gas Group (Petrovietnam), BSR became the leading unit in the number of initiatives in the Oil and Gas industry with 383 initiatives. And most recently, for the first time after 15 years of establishment, BSR was honored to receive the State Prize for Science and Technology in 2022.

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