Crude oil tanks at Dung Quat refinery. — Photo bsr.com.vn

HÀ NỘI — As geopolitical tensions in the Middle East continue to disrupt global oil markets, Binh Son Refining and Petrochemical JSC has stepped up efforts to stabilise production and ensure fuel supply for the domestic market.

Operating the Dung Quat Oil Refinery, the country's first and largest refinery, BSR currently supplies approximately 30-35 per cent of Việt Nam's total fuel demand, positioning the company as a critical pillar in national energy security. 

The ongoing instability in the Middle East, a region that supplies a significant portion of the world's crude oil, has caused supply disruptions and price spikes. In response, BSR has actively diversified its crude procurement strategy, reducing reliance on any single geographic source.

The refinery, with a designed processing capacity of 6.5 million tonnes of crude oil per year, processes both domestic and imported crude oil, with approximately 30-35 per cent of feedstock sourced from international markets, including West Africa, the Mediterranean, the US and the Middle East.

This diversification strategy has been further strengthened through cooperation agreements with major international oil companies. 

Notably, in early February, BSR signed supply and collaboration deals with US-based energy giants such as Chevron and ExxonMobil, ensuring access to additional crude volumes under various market conditions.

At the signing ceremony in Washington DC, a Chevron representative emphasised the importance of the partnership, stating that BSR is one of the company's key partners in Southeast Asia with a commitment to ensuring the safe and stable operation of the refinery. 

Maintaining maximum operational capacity

Amid heightened market volatility, BSR has instructed all refinery units to maintain stable operations and run at planned maximum capacity. 

BSR General Director Nguyễn Việt Thắng said the company is implementing flexible production and trading plans to meet domestic demand. 

Refinery units have been instructed to maintain stable operations, he noted, highlighting the company's priority of ensuring uninterrupted fuel supply. 

In addition, the company has increased inventory levels and prepared contingency import plans to mitigate potential disruptions caused by prolonged geopolitical conflicts.  

The new crude-oil storage tank is being completed by BSR. — Photo bsr.com.vn

Beyond short-term measures, BSR is investing in infrastructure to enhance long-term supply security. The company has launched projects to expand crude oil storage capacity, aiming to improve feedstock flexibility and reduce supply risks. 

Dung Quat Refinery currently has eight crude oil tanks.

Speaking at the groundbreaking ceremony of a storage expansion project, Thắng said that the investment would significantly enhance operational capabilities and flexibility while supporting national energy security objectives. 

The project will both reduce exposure to energy-market volatility and cut logistics costs, especially vessel storage fees, while increasing strategic crude-oil storage capacity.

It strengthens the plant's operational efficiency and resilience and aligns with the Government's policy to bolster national energy reserves, contributing to energy security and national defence.

Global oil markets have experienced heightened volatility due to geopolitical developments, with fluctuations in crude prices directly impacting refining margins. In this context, Binh Son Refining has adopted a flexible approach to both production planning and commercial operations.

The company is actively monitoring international oil markets and adjusting its procurement and production strategies accordingly. 

It also monitors domestic and international markets and prepares import plans, BSR stated, indicating readiness to respond to various disruption scenarios. 

In addition, BSR is developing multiple financial and operational scenarios, including those involving force majeure conditions, to ensure business continuity under different market environments. 

Its efforts to stabilise production and diversify supply sources come at a time when Việt Nam is increasingly focused on strengthening its energy security amid global uncertainties.

With stable operations at the Dung Quat Refinery and a diversified crude supply portfolio, BSR is expected to maintain output of over 7.7 million tonnes of refined products annually.

These measures not only support domestic fuel supply but also contribute to broader policy objectives aimed at reducing dependence on imported refined products and enhancing the resilience of Việt Nam's energy system. — BIZHUB/VNS