Signed a long-term supply contract of Bach Ho crude oil for the Dung Quat Oil Refinery

Witnessing the signing ceremony, PVN Chairman of the Board of Directors Le Manh Hung, PVN General Director Le Ngoc Son and leaders of Vietsovpetro, PVOIL and BSR.

During the operation of Dung Quat Oil Refinery to date, the role of domestic crude oil has been particularly important, accounting for a large proportion of the input materials of the factory. Currently, BSR has successfully purchased and processed 11 types of Vietnamese crude oil, 23 types of crude oil imported from regions around the world and 2 types of intermediate materials.

As of January 16, 2024, BSR's processing output has reached 100 million tons of crude oil and raw materials. Of these, 85.58 million tons of Vietnam's crude oil, more than 15 million tons of imported crude oil and 0.255 million tons of other materials.

Previously, BSR had signed many long-term crude oil purchasing contracts with domestic oil owners and partners. Including long-term contracts (period 2021 - 2024 and 2024 - 2026) to buy all crude oil output of Bach Ho, Dragon (Rong) field, Ursa Major (Dai Hung) and White Rhinoceros (Te Giac Trang).

The volume of Bach Ho crude oil supplied to Dung Quat Oil Refinery under the principle contract for the period from July 1, 2021, to June 30, 2024, is 53.40 million barrels. The total volume of crude oil above accounts for over 30% of the total crude oil supply for Dung Quat Oil Refinery. The parties involved (Vietsovpetro, PVOIL and BSR) have coordinated and cooperated well throughout the contract implementation process and have achieved the desired set goals for ensuring production safety at Vietsovpetro's warehouses and continuous, stable exploitation activities.

In the context of fluctuating foreign crude oil supply and high transportation prices, domestic crude oil plays an even more important role for Dung Quat Oil Refinery to operate safely and stably.

Sharing about this, Mr. Bui Ngoc Duong-BSR General Director said: "BSR has implemented a long-term strategy to purchase raw crude oil to be proactive and autonomous in production and business.

The signing of a principal contract for the long-term supply of Bach Ho crude oil for the next 3 years is of great significance to BSR because Bach Ho crude oil output will account for the largest proportion of raw material input of BSR.