Based on the effectiveness of processing Azeri crude oil as well as the adjustment of import tariff on crude oil to zero, Binh Son Refining and Petrochemical Co., Ltd. (BSR) decided to add this resource to the list of strategic materials in 2020 and upcoming years.
|SOCAR Trading and Dung Quat oil refinery signing the supply contract |
On November 29, BSR and SOCAR Trading – the marketing arm of the State Oil Company of the Azerbaijan Republic (SOCAR) – signed a contract to supply crude oil to Dung Quat oil refinery. Accordingly, SOCAR Trading will supply 5 million barrels in the first half of 2020.
Azeri is a mixing ratio of 60 per cent petroleum and other products, higher than other crude oil varieties, which will make it more competitive compared to other imported crude oils. Besides, in this September, the prime minister issued Decision No.28/2019/QD-TTg adjusting the import tax on crude oil to 0 per cent.
After the deal, BSR completed the purchase of 11.6 million barrels of crude oil in the first six months of 2020. The remaining crude oil covering the refinery's production will come from local suppliers, including crude oil exploited from the Bach Ho field.
|Bui Minh Tien, general director of BSR |
Bui Minh Tien, general director of BSR, said, “Azeri will be the strategic crude oil material for Dung Quat oil refinery, complemented by WTI, Midland, and Bonny Light. BSR and SOCAR both expect to maintain long-term relations so that Azeri products can become a stable supply source for the expanded Dung Quat oil refinery."
Hayal Ahmadzada, deputy general director of SOCAR, said that this signing will open new co-operation opportunities in the future, and marks the 10-year relationship between BSR and SOCAR Trading in supplying crude oil for Dung Quat oil refinery.”
|Hayal Ahmadzada, deputy general director of SOCAR |
From early this year, BSR received 6.86 million tonnes of crude oil and generated 6.4 million tonnes of finished products with the revenue of VND92.8 trillion ($4.03 billion). BSR reported the 7th position in the list of the 500 largest enterprises in Vietnam in 2019.