Petrovietnam seeks to import crude oil from the US

Source

On May 9, 2022, during a business trip to the US, Vietnam Oil and Gas Group (PVN) and Binh Son Refining and Petrochemical Joint Stock Company (BSR) had working sessions with partners/suppliers of crude oil in Houston (USA).

Leaders of Petrovietnam and BSR working with crude oil partners in the US

The mission led by Mr. Le Ngoc Son, PVN Deputy General Director, Mr. Pham Van Chat, Head of PVN Gas Industry and Refining and Petrochemical Department, Mr. Pham Gia Minh, Deputy Head of PVN Gas and Oil Search and Exploration Department, Mr. Bui Ngoc Duong, BSR General Director, Mr. Nguyen Viet Thang, BSR Deputy General Director and Head/Deputy Head of BSR functional departments.

PVN and BSR worked with Vitol and Tranfigura partners on the opportunities to supply crude oil to Dung Quat oil refinery plant and with Shell Houston to supply crude oil for the refinery plants in Vietnam.

PVN, BSR and Vitol, Tranfigura, Shell Houston partners considered that the world crude oil market is facing short-term challenges from the Russia-Ukraine war, leading to interruption of crude oil supply from Russia.

The crude oils from other regions face violent competition due to lack of supply and the prices with high increase and large fluctuation. These challenges can be prolonged and even the experience crude oil suppliers like Vitol or Shell also find difficulties to access crude oil sources to supply the customers.

BSR is an enterprise managing and operating Dung Quat Oil Refinery plant. In 2021, BSR imported 9 types of crude oils WTI, Azeri, Cabinda, Qua Iboe, Sumatra Light (Minas), Bu Attifel, Forcados, Rabi Blend Sokol. Among which the largest volume was WTI from the US and Azeri from Azerbaijan. It is known that BSR import volume of crude oil in 2021 was 1.49 million tons (accounting for 21.4% of the total 7.08 million tons of crude oil produced by Dung Quat Oil Refinery Plant).

BSR production plan in 2022 expects the Vietnam oil as 75-82% and import oil as 18-25% (1.3 – 1.6 million tons). In the coming time, BSR will continue to evaluate and expand the oil basket and list of imported crude oil suppliers.

This working mission to the US on this occasion is a very good opportunity for BSR through major crude oil suppliers in the world to continue to increase the output to buy existing crude oils and expand the oil basket for stable supply of crude oil for Dung Quat Oil Refinery Plant.