Dung Quat, the country's first oil refinery, has played a significant role, laid the foundation for development of the refining and petrochemical industry, and contributed to ensuring national energy security. Over the past 16 years, as the manager and operator of the country's first oil refinery - Binh Son Refining and Petrochemical Joint Stock Company (BSR) has demonstrated a pioneering spirit and a strong commitment to developing the country's refining and petrochemical industry.

Mastering science and technology

The successful construction and operation of Dung Quat Refinery marks an important milestone for Vietnam Oil and Gas Group (Petrovietnam) as it completes the value chain from exploration and exploitation to transportation and oil and gas processing.

On May 9, 2008, Binh Son Refining and Petrochemical Joint Stock Company was established to oversee the management and operation of Dung Quat Refinery. BSR takes pride in being a key pillar in Petrovietnam's core areas, which include oil and gas exploration and exploitation, refining and petrochemicals, the gas and electricity industries, and high-quality oil and gas services.

Over the past 16 years, with the active support and guidance of the Vietnam Oil and Gas Group, generations of leaders and staff at BSR have remained united, enthusiastic, and dedicated to overcoming numerous challenges and difficulties in operating Dung Quat Refinery safely and effectively. BSR has cultivated a team of over 1,500 well-trained employees, possessing high technical expertise and demonstrating dedication, professionalism, and creativity in their work. This team is a “valuable asset” for BSR and a high-quality human resource within the Vietnam Oil and Gas industry.

Since the Dung Quat Refinery came into operation, BSR has processed more than 100 million tons of crude oil, produced and sold over 91 million tons of products, meeting over 30% of the country's gasoline and oil demand. This accomplishment has resulted in the generation of almost VND 1,600 trillion in total revenue and a contribution of nearly VND 224 trillion to the State budget, exceeding three times the initial investment. Furthermore, BSR's contributions have been instrumental in bolstering Petrovietnam's revenue and profits, as well as benefiting the budget of Quang Ngai Province. Notably, BSR serves as a vital component of the Government's macro-regulatory tools in relation to petroleum supply, ensuring national energy security and providing specialized fuel for national defense.

BSR has evaluated 89 potential types of crude oil for the Plant and successfully processed 32 varieties of domestic and foreign crude oil. This strategic initiative is designed to offset the diminishing availability of Bach Ho crude oil and has included the assessment of two intermediate materials (SR LSFO and VGO) for processing.

In addition to the traditional products such as RON A92/95 gasoline, Diesel oil, Propylene gas, and Polypropylene plastic granules, liquefied petroleum gas (LPG), Jet A1 kerosene-type fuel and fuel oil (FO), BSR has conducted research, production, and successful sales of seven new fuel products. These products include Marine FO, Treated LCO, RFCC gasoline, MixC4, three products for national defense (JetA-1K, ADO-L62, A80 gasoline), as well as seven new PP pellets.

BSR has researched and implemented numerous solutions to optimize energy usage and reduce emissions at the Dung Quat Refinery. Since 2015, BSR has successfully adopted over 60 energy optimization solutions, resulting in annual savings of more than VND 500 billion for the Factory. In response to increasing market demand and to enhance production efficiency, BSR has maximized the factory's operating capacity beyond its original design. For example, the capacity of the Kerosene treatment Unit (KTU) has increased by 140%, the crude oil distillation Unit (CDU) by 118%, the Naphtha Hydrotreater (NHT) Unit by 137%, the continuous catalyst regeneration (CCR) Unit by 112%, the RFCC Unit by 110%, and Sulfur recovery Unit No.2 (SRU2) by 110%.

The driving force for socio-economic development of Quang Ngai Province

Over the course of 16 years, BSR has consistently achieved its assigned tasks. The year-by-year results demonstrate the alignment with the vision, guidelines, and policies set forth by the Party and State in the establishment of the Dung Quat Refinery in Quang Ngai Province.

BSR's growth is not only shown in the Oil and Gas industry but also its standing within the Vietnamese business community. In 2023, BSR was ranked as the 4th largest company by market capitalization in Vietnam's Top 500 and received a BB+ rating with a "Stable outlook" from Fitch Ratings.

BSR not only solidifies its position as the flagship of Petrovietnam, but it also plays a vital role in Quang Ngai Province. Since its inception, the Dung Quat Refinery has had a significant impact on the socio-economic landscape of Quang Ngai Province and the Central-Central Highlands region. This includes contributions to economic and infrastructure development, fostering linkages among industries and regions to support tourism and service development, enhancing logistics, freight transport, and the marine economy, promoting the overall development of industries and supporting industries related to petrochemical, refining and energy products, as well as attracting domestic and foreign investment.

Dung Quat Economic Zone has experienced significant development, with the Dung Quat Refinery playing a particularly crucial role. Within Dung Quat Economic Zone and Quang Ngai industrial zones, there are approximately 350 projects valued at over VND 380.4 trillion. This includes 54 foreign direct investment projects (FDI) with a total registered investment capital of nearly USD 1.9 billion and 296 domestic projects with a combined registered capital of almost VND 337 trillion. There are currently 197 production and trading enterprises that have generated job opportunities for more than 63,000 workers. BSR stands out as the largest company and serves as a catalyst for the economic growth of Quang Ngai Province, attracting investors to the region.

When selecting Dung Quat as the site for Vietnam's first oil refinery, the Government and the Group entrusted BSR with pivotal responsibilities. These include bolstering the nation's self-sufficiency in gasoline and oil supply, ensuring national energy security, fostering the socio-economic advancement of Quang Ngai Province, and effectively fulfilling social security obligations. Consequently, throughout its establishment and growth, BSR has effectively achieved the mandates set forth by the Party, the State, and the Group. Additionally, BSR prioritizes and supports community-centric social security initiatives nationwide, dedicating over VND 860 billion to these programs.

BSR is currently actively engaged in the Dung Quat Refinery Upgrade and Expansion Project, doubling down on efforts to reach new milestones in its development journey. The company's strategic vision through 2030, with an outlook toward 2045, is to position itself as a key pillar in establishing the National Energy and Petrochemical Refining Center in the Dung Quat Economic Zone. This strategic positioning is aimed at contributing to national energy security, bolstering the state budget, supporting the sustainable development of Petrovietnam, and actively aiding Vietnam in achieving its commitments at the COP26 Conference. BSR's forthcoming growth model will center around petrochemical refining as its core, with a transformative approach to business and investment strategies.