Oil refinery engineers at BSR have become oil refinery experts

Contribution to State budget, ensuring national energy security

The Dung Quat Oil Refinery Project has a total investment of 3.054 billion USD. The first commercial product line was launched on February 22, 2009.

Over the past 15 years of development, Dung Quat Oil Refinery has operated stably, ensuring about 30% of the domestic petroleum supply and contributing to ensuring energy security for Vietnam. Up to now, the company has processed more than 94 million tons of crude oil and sold more than 86 million tons of products earning a revenue of nearly 1.7 million billion VND with after-tax-profit of more than 44 trillion VND and State budget contribution of more than 207 trillion VND (or nearly 9 billion USD) - nearly 3 times the total project investment.

In 2022, BSR contributed more than 19 trillion VND to the State budget, which is equivalent to 150% of Thua Thien Hue province's budget revenue, 78% of Da Nang city, 72% of Quang Nam province, and 115% of Binh Dinh province.

In Quang Ngai province alone, where Dung Quat Oil Refinery is located, BSR accounts for 56% of the province's total budget revenue.

Dung Quat Oil Refinery is the most important driving force to accelerate the growth rate and economic restructuring of Quang Ngai. Dung Quat Economic Zone is considered one of the pioneering and successful economic zones in the country, with many other large projects such as Doosan Vina Heavy Industry Factory, Hoa Phat Dung Quat Iron and Steel Production Complex, and VSIP Industrial Park.

Dung Quat Oil Refinery is considered a "magnet" to attract investment, as well as a "hinge" to shift Quang Ngai’s economic structure from a purely agricultural province to an industrially developed province. Quang Ngai is among the top provinces that contribute remarkably to the national budget.

Chairman of Quang Ngai province Dang Van Minh said “Dung Quat Economic Zone is the growth nucleus of Quang Ngai province with Dung Quat Oil Refinery playing the central role. The great contributions made by Dung Quat Economic Zone, especially Dung Quat Oil Refinery, have transformed Quang Ngai province from a poor, purely agricultural province, with a low economic starting point and a budget depending entirely on the central budget, to become a province with a large revenue of 121,668 billion VND

In addition to contributing to the State budget, Dung Quat Oil Refinery also plays an important role in ensuring national energy security.

At the end of 2022, amidst significant fluctuations in the Vietnamese petroleum market, the role of Dung Quat Oil Refinery became increasingly important. In principle, Vietnam attains self-sufficiency in approximately 70% of its domestic petroleum supply through two refineries, namely Dung Quat and Nghi Son, with the remainder being imported. However, theory diverges significantly from reality. Dung Quat Oil Refinery had consistently maintained its stable operations at elevated capacities, occasionally reaching 112%—the highest in its operational history. This steadfast performance plays a crucial role in mitigating shortages and stabilizing the demand for domestic petroleum in the face of supply shortages.

Analyzing data spanning 15 years of operation reveals that over 30% of the supply from Dung Quat Oil Refinery remains the most reliable source for the domestic market during periods of fluctuation. The pivotal role played by Dung Quat Oil Refinery becomes even more apparent in times of market volatility. Quantifying this importance with precise figures proves challenging, yet upon careful examination, its role emerges as consistently ensuring supply within the refinery's capacity—currently around 30% of the market demand. The refinery's proactive measures, such as output regulation and swift exportation of goods, serve as tangible actions that underscore its vital role. Dung Quat Oil Refinery stands as a crucial component, akin to a significant "brick," contributing to Vietnam's energy security and laying a robust foundation for national development.

Over the past 15 years, BSR contributed 207 trillion VND to the State budget, three times the investment capital

Training experts, scientists to serve national development

On May 9, 2023, marking the 15th anniversary of BSR's establishment, Petrovietnam General Director Le Manh Hung remarked, "BSR's workforce transcends mere oil refining; they are oil refinery experts. Indeed, the human resources at BSR have not only mastered petrochemical refining technology but have also achieved top-tier status in the region."

BSR General Director Bui Ngoc Duong, also addressing the 15th anniversary event, asserted, "The company's employees form a valuable asset, and as such, Binh Son Refining and Petrochemical Joint Stock Company will persist in cultivating and expanding a corporate culture aligned with the Petrovietnam Culture Regeneration Project. This aims to instill and nurture pride and unity among oil refiners for the sustainable development of the country and Petrovietnam."

Over the past five years, BSR has confronted numerous difficulties and challenges, with one of the most formidable periods occurring during a double crisis triggered by the global oil and gas market downturn, compounded by the challenges posed by the Covid-19 pandemic.

There was a period during which the price of oil turned negative, signifying an unprecedented situation where the individual who had signed the previous purchase contract was compelled to pay the seller due to inventory issues and a lack of storage space. This occurrence marked an unprecedented event in the history of the global oil industry.

In this challenging context, the management efforts of BSR once again underscored their significance. The leaders at BSR meticulously analyzed the market, devising optimal strategies to navigate the crisis. Potential solutions included running the factory at minimal capacity, optimizing the product structure, leveraging external warehouses to augment storage capacity, and implementing policies to stimulate product sales. Furthermore, proactive negotiations with partners to swap or delay the delivery of crude oil lots were pursued to steer clear of accumulating excessive crude oil inventories. These measures proved instrumental in helping BSR surmount the crisis and swiftly resume business operations as the market gradually recovered.

Simultaneously, BSR accurately gauged the market's downturn and the decline in the price differential between input materials and output products. As a result, BSR implemented the right course of action, enabling the entity to overcome challenges and transform inventory difficulties into strengths as the market rebounded.

Throughout its development, BSR has repeatedly encountered challenges related to market fluctuations, potential shortages of raw materials, and energy competition in the oil refining sector. To overcome these obstacles, BSR has identified scientific research as a strategic solution to optimize capacity, ensure safe and stable production, reduce energy consumption, and uphold environmental factors. This approach aims to enhance the efficiency of production, business operations, and the sustainable development of the company.

A notable highlight in BSR's scientific research efforts is the cluster of projects titled "Application of science and technology solutions to optimize the production process of Dung Quat Oil Refinery to enhance the efficiency and competitiveness of BSR." This project cluster received the prestigious State Award for Science and Technology from the President, recognizing its contribution to national development and defense.

The construction complex also played a role in reducing the Factory's EII energy consumption from 118% in 2014 to 103-106% in 2018 and 2019. (It's worth noting that a 1% reduction in EII translated to approximately 2.6 million USD in annual savings.) Concurrently, the Factory’s overall production costs saw a gradual decline, dropping from 7.1 USD/barrel of oil in 2014 to 4.9 USD/barrel of oil in 2019—an equivalent saving of around 24-43 million USD per year. The cumulative economic efficiency of the project cluster reached VND 4,270 billion as of December 31, 2019.

In the realm of scientific research initiatives, BSR took the lead in quantity within the oil and gas industry as part of the 1 million initiatives program initiated by the Vietnam Oil and Gas Group (Petrovietnam), boasting a total of 383 initiatives. Most notably, BSR was honored with the State Award for Science and Technology in 2022 for the first time.