Three major Vietnamese oil corporations, Petrovietnam Exploration Production Corporation (PVEP), Petrovietnam Oil Corporation (PVOIL), and Binh Son Refining and Petrochemical JSC (BSR), have finalized an agreement to supply crude oil from the Dai Hung field to the Dung Quat refinery.
The agreement, focusing on the period from 2024 to 2027, solidifies the commitment to long-term crude oil supply from Dai Hung to the refinery located in Quang Ngai province.
“This contract marks a significant step in expanding cooperation and enhancing the efficiency of the value chain within the Vietnam Oil and Gas Group (Petrovietnam),” stated a representative from PVEP.
Since 2021, the trio has been executing a similar long-term supply agreement for Dai Hung crude oil, underscoring their strategic alignment with government directives to maximize domestic crude oil utilization. This initiative aims to bolster energy security and mitigate the impacts of global crude oil market fluctuations.
The recent signing ceremony in Hanoi on July 14 also witnessed PVEP and Petrovietnam Gas Corporation (PVGAS) signing a memorandum of understanding (MoU) on gas supply and consumption from the Ky Lan field. This MoU is anticipated to lay essential groundwork for oil and gas operations in the Red River basin within the Gulf of Tonkin.
The collaboration between these entities has already yielded promising results, with approximately 6.44 million barrels of oil successfully exchanged, generating revenue amounting to approximately USD 614.4 million.
The agreements signify a pivotal moment for Vietnam’s oil and gas sector, positioning it for sustainable growth and strengthened operational capabilities in the regional energy landscape.
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